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Showing posts with the label Bank of England maintains Bank Rate at 0.5% and increases size of Asset Purchase Programme by £50 billion to £375 billion

Bank of England maintains Bank Rate at 0.5% and increases size of Asset Purchase Programme by £50 billion to £375 billion

Bank of England maintains Bank Rate at 0.5% and increases size of Asset Purchase Programme by £50 billion to £375 billion 05 July 2012 The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%.   The Committee also voted to increase the size of its asset purchase programme, financed by the issuance of central bank reserves, by £50 billion to a total of £375 billion. UK output has barely grown for a year and a half and is estimated to have fallen in both of the past two quarters.   The pace of expansion in most of the United Kingdom’s main export markets also appears to have slowed.   Business indicators point to a continuation of that weakness in the near term, both at home and abroad.   In spite of the progress made at the latest European Council, concerns remain about the indebtedness and competitiveness of several euro-area ec