United Kingdom: Bank of England MPC Keeps Interest Rate and Quantitative Easing Unchanged5 May, 2011, 19:12. Posted by Zarathustra
Tags: Bank of England, Economy, Inflation, United Kingdom
The Bank of England once again keeps everything unchanged. Just now, the Monetary Policy Committee keeps the Bank rate at 0.5% and the size of the asset purchase programme a.k.a. quantitative easing at £200 billion. The decision is in-line with consensus. The minutes for this meeting will be published on 18 May, something that I always look forward to.
Again, it is always useful to recap a few data points. Inflation in March unexpectedly fell, with CPI inflation eased to 4.0%, and the RPI inflation slowed to 5.3%. However, the economy was back in growth in the first quarter, with the GDP grew by 0.5% compared to the last quarter of 2010, and 1.8% compared to the first quarter of 2010. Of course, the GDP number was by no means a good number, as the GDP of the first quarter was only back to where it was before the snowed induced contraction of the economy.
On the monetary policy front, the situation remains pretty much the same in the past few months, with 3 members of the MPC consistently voted for interest hike, and 1 member voted to an increase of the size of asset purchase programme. Again, it will be interesting to see if that changed in the latest meeting.
And as a reminder, the European Central Bank will be announcing its rate decision in around 30 minutes time. Stay in tune by following us on Twitter.