Bank of England keeps its base interest rate at all-time low of 0.5%, decides not to approve additional monetary stimulus despite country being officially in recession
May 10, 2012
– The Bank of England has kept its base interest rate at the all-time low of 0.5 percent and has not approved any additional monetary stimulus.
Thursday's announcement from the Bank's Monetary Policy Committee means the stimulus program of asset purchases remains at a total of 325 billion pounds ($524 billion).
With the U.K. economy officially in recession after two quarters of shrinking GDP, analysts had thought there was a chance of additional stimulus this month. Most, however, believed that worries about growth would be outweighed by concern over persistently above-target consumer price inflation, currently at 3.5 percent.
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