Bank of England Leaves Rates on Hold

“The Bank of England kept its benchmark interest rate at a record low as signs the recovery is losing momentum kept a majority of policy makers focused on stimulating growth during the government’s fiscal squeeze.

The nine-member Monetary Policy Committee, led by Governor Mervyn King, held the key rate at 0.5 percent, as forecast by all 43 economists in a Bloomberg News survey. The bank also left its bond-purchase program at 200 billion pounds ($330 billion), as forecast by 29 economists in a separate poll.

The economy stalled over the fourth and first quarters, and surveys this week showed services, manufacturing and construction growth moderated in April. Officials, who will publish new growth and inflation forecasts next week, are split on the threats from government spending cuts and inflation that’s double the central bank’s 2 percent target.”

Full article