No change to base rate or QE

Wednesday, 4th April, 2012

The Bank of England’s monetary policy committee has voted to keep base rate at a record-low 0.50% for the 37th consecutive month and to keep its programme of quantitative easing at £325bn. Base rate was cut to 0.50% in March 2009, on the same day the BoE initiated a programme of QE worth £75bn. In February, the BoE voted to increase the size of its QE programme by £50bn to £325bn. The latest round of QE will complete next month. The minutes from last month’s MPC minutes show it was split 7-2 over whether to increase the size of its quantitative easing programme beyond its current £325bn level. MPC members David Miles and Adam Posen voted to increase the size of the programme by £25bn to £350bn.