United Kingdom Monetary Policy

United Kingdom

BoE policymakers leave policy rate unchanged, remain divided over QE

At its 5-6 June monetary policy meeting, the Bank of England (BoE) maintained both the Bank Rate at 0.50% and the size of its asset purchase programme at a total of GBP 375 billion.

All nine members of the Monetary Policy Committee (MPC) voted in favour of keeping the Bank Rate unchanged at 0.50%. Meanwhile, a majority of six members were in favour of maintaining the asset purchase programme at its current size, mirroring the previous meeting's result. Governor Sir Mervyn King and two other MPC members voted to increase the asset purchase programme by GBP 25 billion to a total of GBP 400 billion. The next monetary policy meeting is scheduled for 3-4 July. This was Sir Mervyn King's final interest rate-setting meeting as he will be replaced by Mark Carney on 1 July.

All FocusEconomics Consensus Forecast panellists expect the BoE to leave interest rates unchanged at 0.50% this year. For next year, a majority of panellists also expect the Bank to stay put, resulting in a year-end projection of 0.55%.


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United Kingdom Monetary Policy Chart

United Kingdom Monetary Policy June 2013

Note: Bank rate in %.
Source: Bank of England (BoE).

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