Bank of England Keeps Powder Dry

October 7, 2010

The Bank of England’s Bank Rate was left at 0.5%, its level since March 2009.  The Asset Purchase Program’s size was kept at GBP 200 billion, a ceiling that was exhausted at end-January 2010.  A simple statement from the nine-person Monetary Policy Committee added only that minutes from this week’s meeting will be published on October 20.  Andrew Sentance probably dissented in favor of a 25-basis point increase as he had done at each of the four previous monthly meetings.  It is also possible that one or more other committee members could have dissented in favor of an immediate increase to the asset purchase program limit, thus creating a three-way split in the vote.  Stay tuned.

Copyright Larry Greenberg 2010.  All rights reserved.  No secondary distribution without express permission.



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