Thursday, Sept 10th, 2009
The Bank of England left interest rates at a record low of 0.5 percent for the sixth month running on Thursday and stuck with its program of asset purchases to steer the economy towards recovery.
Most analysts had predicted the status quo after last month’s shock decision to raise the amount of money the BoE is printing to support the economy — quantitative easing — by 50 billion pounds to 175 billion pounds.
But sterling gained and front month short sterling futures pared gains because some strategists had priced in an outside chance it would do more to stimulate an economy battered by its worst recession in decades.
The BoE’s willingness to keep its foot on the monetary accelerator at a time of growing recovery optimism has set it apart from other central banks.