The Bank of England voted on Thursday to hold interest rates at 0.5% but extended its programme of quantitative easing, pumping another ￡25bn into the economy in what was described as “one last heave” to propel growth. However, the Bank indicated it will slow the pace of cash injections under its QE programme over the next three months, in line with its slightly improved economic outlook. The extension will bring the total cost of the programme to ￡200bn. The move follows tentative signals from the Fed and ECB of an end to their ultra-loose monetary policy. See also FT Alphaville.

This entry was posted by Gwen Robinson on Friday, November 6th, 2009 at 4:50 and is filed under Capital markets. Tagged with bank of england. Edit this entry.