Bank of England votes to stabilize monetary policy
February 7, 2014, 12:06 am TWN
LONDON--The Bank of England voted Thursday to keep its main interest rate at a record-low level of 0.50 percent, where it has now stood for nearly five years.
Opting against following the U.S. Federal Reserve in tapering, the BOE also decided to maintain at 375 billion pounds (US$613 billion) the quantitative easing (QE) stimulus that boosts bank lending and economic activity.
Markets shrugged off the decisions, which were both in line with analysts' expectations amid falling inflation, lower unemployment and a pick-up in British economic growth.
“The Bank of England's Monetary Policy Committee (MPC) today voted to maintain Bank Rate at 0.50 percent,” the central bank said in a statement at the conclusion of the monthly gathering.