Bank of England decides against pumping extra cash into economy
RATE-setters held off from further help to ease the recession today after a surprise refusal to pump extra cash into the economy.
The Bank of England's Monetary Policy Committee (MPC) had been widely expected to expand its quantitative easing (QE) programme – effectively printing money – by 25 billion to 150 billion.
But the scale of the operation was left unchanged at 125 billion, while interest rates were held at their current 0.5% record low for the fourth month in a row.
The decision comes despite concerns over the fragility of recent signs of stabilisation in the economy following a steep decline.
Manufacturing output showed a surprise fall in May, while official figures have shown a far worse than expected 2.4% slump in overall GDP in the first three months of 2009 – the worst in more than 50 years.
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Sunday 19 February 2012
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