Bank of England: No Policy Change Now

March 7, 2013

The Monetary Policy Committee did not change its 0.5% Bank Rate or add to its GBP 375 billion asset purchase program.  Analysts weren’t looking for any changes.  Officials reverted to their usual pattern of not revealing any information immediately about the latest meeting’s discussions.  The released statement merely notes when the interest rate and QE were last modified and directs the public to minutes, due March 2, for further information.  Minutes from the February meeting had disclosed a split 6-3 vote for unchanged policy in which Governor King had sided with the minority that favored a GBP 25 billion extension of quantitative stimulus to GBP 400 billion.  At that time, the 6-person majority preferred to hold its fire but be ready to increase asset buying if future changes in the growth outlook should warrant.  The Committee already has shown a willingness to tolerate above-target inflation rather than raise rates in response.  Policy makers in January had split their vote 8 to 1.

Copyright 2013, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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