This article was last updated on April 16, 2022
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The Bank of England (BoE) policymaking committee has decided to keep the interest rates unchanged at 0.5 percent and rejected calls to inject more money into the British ailing economy by through money printing programme.
The central bank’s Monetary Policy Committee on Thursday has opted to maintain its asset purchase program at 375 billion pounds ($563 billion) despite having the calls to pump more money to revive the economy. However, economists are of strong belief that there are high chances of BoE would increase its quantitative easing (QE) programme by £25bn, making the asset purchases total to £400bn.
In response to the Bank’s announcement, pound sterling climbed back sharply above $1.50 to hit $1.507. Earlier the pound fell below $1.50 due to the speculation that more QE could be announced.
Earlier the British Chambers of Commerce had told to expect an expansion to quantitative easing, but not before May.
The programme that involves injecting new cash into the economy by buying government bonds has encouraged the investors.
However, a few economists are concerned that without further stimulus, British economy will keep on growing at the current slowest rate.
The central bank has told to publish the minutes of the latest meeting, explaining the reasons behind the BoE’s monthly policy decisions on March 20.
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