United Kingdom: Bank of England stance unchanged
May 18, 2011
At its monetary policy meeting on 5 May, the Bank of England (BoE) left both the Bank Rate at 0.50% and the asset purchase facility (quantitative easing) unchanged at GBP 200 billion. The decision was broadly anticipated by the market, as a slight moderation in inflation in March along with feeble growth eased pressure on the Bank to take immediate action. As was the case in previous meetings, three out of the nine members of the Monetary Policy Committee (MPC) voted to tighten the monetary policy, again, the most hawkish being Andrew Sentance who voted for a 50-basis-point hike. The remaining six members, including BoE governor Mervyn King, voted to maintain the current stance. The next MPC meeting will be held on 9-10 June, with most analysts expecting no interest rate hike.