• From The BBC:

    The Bank of England’s interest rate setters have kept the cost of borrowing unchanged at 0.5% for the fourth month in a row.It added it was not planning to extend its quantitative easing scheme under which it creates money to buy bonds in order to stimulate the economy. It will continue with its current plan to spend £125bn. Some had expected it would increase that amount. But the move allows it to pause and assess economic data, observers said. The Bank’s Monetary Policy Committee (MPC) could have increased its quantitative easing spending by an additional £25bn without asking the Treasury.
    But the Bank did not announce an extension of the programme this month because it wanted to see whether it was working, said Bronwyn Curtis, head of global markets at HSBC. “I don’t think they know yet [whether quantitative easing is working],” she said. “The other thing about pausing is that they can always do more if the economic data deteriorates again.” ‘Extension needed’The Britis…

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    Posted by Jon @ 8:23 pm

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