Bank of England maintains Bank Rate at 0.5% and the size of the Asset Purchase Programme at £375 billion

cii-chartered-financial-planner-gold24.jpgSBG LogoOn Thursday 6th December 2012: The Bank of England’s Monetary Policy Committee voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £375 billion.

The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.5% on 5th March 2009. A programme of asset purchases financed by the issuance of central bank reserves was initiated on 5th March 2009. The previous change in the size of that programme was an increase of GBP £50 billion to a total of GBP £ 375 billion on 5th July 2012.

The Bank has stated that it will continue to offer to purchase high-quality private sector assets on behalf of the Treasury, financed by the issue of Treasury bills, in line with the arrangements announced on 29th January 2009 and 29th November 2011.

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