Bank of England: No Policy Changes is No Surprise

June 6, 2013

As expected the Monetary Policy Committee voted to leave its Bank Rate at 0.5%, the level since March 2009, and to keep the Asset Purchase Program limit at GBP 375 billion.  That limit was reached by early November, four months after a GBP 50 billion increase decided at the July 2012 meeting.  Minutes of today’s meeting will be published on June 19.  Today’s action was universally expected by analysts.  Recent British data for May showed consumer confidence rising 5 points to a six-month high, the manufacturing PMI increasing by 1.1 points to 51.3, the services PMI climbing 2.0 points to a 14-month high of 54.9, and the construction PMI gaining 1.4 points to a 7-month high of 50.8.  Being above 50, all three key sectors experienced growing activity last month.

The statement released by the MPC provided no information about the meeting’s discussion or the individual voting pattern on policy.  This is typical whenever policy fails to be changed.

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



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