Base rate held and no more QE

Thursday, 7th June, 2012

The Bank of England’s monetary policy committee has decided to hold base rate at a record-low 0.50% for the 39th consecutive month and to keep its programme of quantitative easing at £325bn.

The 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. This latest round of QE completed last month.

The minutes of last month’s MPC meeting show David Miles was the only member – out of nine – to vote for QE to be increased, arguing for a further £25bn.