Bank of England Leaves Policy Settings Unchanged as Expected

January 13, 2011

The Bank of England web site has confirmed that the Monetary Policy Committee left the Bank Rate at 0.5%, its level since March 2009, and did not expand the GBP 200 billion ceiling on the Asset Purchase Program, which was completely met at the end of January 2010.  The Bank’s statement, as usual, said nothing about the policy discussion, all of which will be revealed in minutes to be published on January 26.  In light of inflation now being up to 3.3% versus a 2% target, there no doubt will be at least one dissent in favor of a rate increase.  One mystery to be solved is whether Adam Posen, who has been dissenting in favor a a bigger asset purchase limit, retained that view.  For more background on this meeting, please read my earlier preview.

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

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