Bank of England to hold rates in improving economy: analysts


LONDON:  The Bank of England was Thursday set to maintain its record-low interest rate and level of cash stimulus pumping around an improving British economy, analyst said.

Markets widely expect the central bank’s Monetary Policy Committee to keep its key lending rate at 0.50 percent and maintain its bond-buying quantitative easing (QE) scheme at #375 billion ($604 billion, 444 billion euros) at its October meeting.

Recent positive economic data is set to dissuade the Bank of England from moving to increase the QE amount following a two-day gathering, while its key lending rate should remain on hold until British unemployment falls further.

“There seems not the remotest chance that the Bank of England’s Monetary Policy Committee (MPC) will change any aspect of monetary policy at their October meeting,” predicted Howard Archer, chief chief UK & European economist at IHS Global Insight research group.

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