United Kingdom: BoE maintains stance following divided vote
March 20, 2013
At its 6-7 March monetary policy meeting, the Bank of England (BoE) maintained both the Bank Rate at 0.50% and its amount of asset purchases at a total of GBP 375 billion.
As in the previous meeting, all nine members of the Monetary Policy Committee's (MPC) voted in favour of keeping the Bank Rate unchanged at 0.50%, whereas a majority of six members voted in favour of maintaining the current stock of asset purchases. Regarding the latter, Governor Mervyn King and other two MPC members were aiming to increase the size of the asset purchase programme by GBP 25 billion to a total of GBP 400 billion.
All FocusEconomics Consensus Forecast panellists anticipate the BoE to remain on hold in 2013. For 2014, a majority of panellists also expect the Bank to leave interest rates unchanged at 0.50%, resulting in a year-end projection of 0.63%.