Bank of England: No Surprises

December 8, 2011

The Monetary Policy Committee launched a new GBP 75 billion round of long-term asset purchases in October 2011 that will not be completed until late January 2012.  The 0.5% Bank Rate level since March 2009 has long been declared the technically appropriate floor.  As expected, the Bank of England did not make further policy changes this month and simply stated that asset buying will continue progress toward that program’s current ceiling of GBP 275 billion.  The statement released today gave no clues regarding the MPC’s discussion or votes, deferring such revelations as is its customs to the published minutes due December 21.  Further background can be learned from my earlier preview of this week’s policy meeting.

Copyright 2011, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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