Bank declines to turn on monetary taps
The Bank of England declined to pump more stimulus into the economy yesterday, despite signs that the GDP bounce registered in the third quarter of the year is fading.
The Monetary Policy Committee announced there would be no additions to the £375bn pile of government bonds that it has purchased since 2009 in order to support spending.
The MPC also kept interest rates at their record low of 0.5 per cent.
Some analysts had predicted that the MPC would vote for a £25bn increase as surveys of puchasing managers (PMIs) in the construction, manufacturing and services sectors over the past week have pointed to slowing momentum.
The economy grew by a healthier than expected 1 per cent between July and September, according to the Office for National Statistics, although some of this was due to temporary factors such as Olympic ticket sales.
"If the recent trend in the PMIs continues, then further easing would seem likely," said George Buckley of Deutsche Bank.
The European Central Bank also kept monetary policy on hold yesterday, despite multiplying expectations of a deterioration in the eurozone. Its main interest rate was kept at 0.75 per cent. The European Commission this week cut its 2013 growth forecast for the 17-member bloc from 1 per cent to just 0.1 per cent. The ECB's president, Mario Draghi, hinted that the Bank is preparing to downgrade its own forecasts next month.
- 1 I was a Woman Against Feminism too
- 2 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 3 Chief Ebola doctor in Sierra Leone has contracted the deadly disease himself
- 4 Students offered grants if they tweet pro-Israeli propaganda
- 5 Israel has discovered that it's no longer so easy to get away with murder in the age of social media
Lana Del Rey: 'I have slept with a lot of guys in the industry'
Vladimir Putin employs a full-time food taster to ensure his meals aren't poisoned
Chief Ebola doctor in Sierra Leone has contracted the deadly disease himself
Students offered grants if they tweet pro-Israeli propaganda
Israel-Gaza conflict: Israel may have committed war crimes, says UN human rights chief
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
Malaysia Airlines MH17 crash: victims’ bodies bundled in black bags and loaded onto trains
iJobs Money & Business
£375 - £400 per day + competitive: Orgtel: My client, a leading bank, is curre...
£350 - £400 per day: Orgtel: PMO Analyst - Banking - London - £350 -£400 per d...
£300 - £350 per day + competitive: Orgtel: Cost Reporting Manager - MI Packs -...
£35000 - £40000 Per Annum plus 23 days holiday and pension scheme: Clearwater ...