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| Version 0 | Version 1 |
|---|---|
| Bank of England holds rates at 0.5% | Bank of England holds rates at 0.5% |
| (35 minutes later) | |
| The Bank of England's Monetary Policy Committee (MPC) has left interest rates at 0.5%. | The Bank of England's Monetary Policy Committee (MPC) has left interest rates at 0.5%. |
| It has kept the key borrowing rate at that level since March 2009. | It has kept the key borrowing rate at that level since March 2009. |
| The MPC also said it would make no change to the £375bn of monetary stimulus it is providing through its quantitative easing programme (QE). | |
| Unlike last month's interest rate announcement, the first under the new Bank governor, Mark Carney, the MPC made no further comment on policy, | Unlike last month's interest rate announcement, the first under the new Bank governor, Mark Carney, the MPC made no further comment on policy, |
| The MPC will make an announcement about whether it will adopt a policy of "forward guidance", a ploy that gives clues about future moves and helps investors to plan ahead, next week. | The MPC will make an announcement about whether it will adopt a policy of "forward guidance", a ploy that gives clues about future moves and helps investors to plan ahead, next week. |
| That will coincide with the release of the Bank's keenly watched Quarterly Inflation Report. | |
| Weak | |
| Last week, official figures showed the economy was continuing to improve, with GDP growth in the second quarter doubling to 0,6%, and therefore not urgently in need of stimulation. | |
| However, the economy is still 3.3% below levels reached before the downturn of recent years and the MPC has called the recovery weak by historical standards. | |
| David Kern, the chief economist at the British Chambers of Commerce, welcomed the Bank's announcement: "The MPC made the right decision to hold interest rates and quantitative easing. | |
| "Minutes from the recent MPC meeting suggest that QE is unlikely to be increased any time soon and low interest rates will be maintained for a long period, which will provide a stable environment for businesses." | |
| Shortly after the announcement at noon, the pound was half a cent higher against the dollar at $1.524 and also rose against the euro. | |
| The London share market was barely moved. |