RPT-Bank of England leaves rates at 0.5 pct, QE on hold

LONDON, Nov 4 (BestGrowthStock) – The Bank of England left interest
rates at 0.5 percent and kept its asset-buying programme on hold
on Thursday following signs Britain’s economic recovery is not
slowing as rapidly as feared.

The BoE’s decision contrasts with a move by the U.S. Federal
Reserve on Wednesday to buy $600 billion of bonds with new money
over the next eight months, after what it called
“disappointingly slow” progress towards its economic targets.

The rate decision had been anticipated by all 63 analysts in
a Reuters poll. The only analyst who had forecast more QE this
month when polled last week revised his call on Wednesday after
firmer-than-expected services PMI data.

Unexpectedly strong UK growth data for the third quarter and
surveys indicating that manufacturing and service sector
activity is still growing may have encouraged BoE policymakers
to hold off injecting any further monetary stimulus for now.

But there is a chance the UK central bank may eventually
decide that more stimulus is needed to shore up the economy
against deep government spending cuts, and a significant number
of analysts reckon that could come in February.

One Monetary Policy Committee member, Adam Posen, voted in
October for a 50 billion pound ($81 billion) expansion of the
BoE’s 200 billion pound asset purchase programme and is likely
to have done the same this month, while Andrew Sentance will
probably have reiterated his call for higher rates.

Minutes to the Nov. 3-4 meeting published on Nov. 17 will
reveal whether either man was able to win broader support on the
MPC.
(Reporting by Fiona Shaikh, editing by Mike Peacock)

RPT-Bank of England leaves rates at 0.5 pct, QE on hold