Bank of England Review: No Change

March 8, 2012

A statement from the Monetary Policy Committee predictably left the 0.5% British Bank Rate unchanged and did likewise with the GBP 325 billion asset purchase program ceiling.  Minutes of this months meeting are due March 21.  At last month’s meeting when quantitative easing was extended by 50 basis points from GBP 275 billion, Adam Posen and David Miles had favored a bigger expansion of GBP 75 billion to GBP 350 billion instead.  But a number of economic indicators released over the ensuing month were not been as bad as feared, and the majority on the committee worried in February that a larger easing than markets were expecting might spook investors into thinking economic prospects are worse than imagined.

Copyright 2012, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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