The Bank of England leaves the economy floating

Bank of England remains conservative

In brief: The Bank of England does not dare to change the interest rate in the nearest future.

Bank Aglii remains true to tradition. The Committee on Monetary Policy Bank of England on the results of its July meeting is expected to leave key interest rate and program buying bonds unchanged: the rate will remain at 0.5%, and program buying bonds – at 200 billion pounds. Most economists expect that rates will remain unchanged until the beginning of 2012. However, their views on the program asset purchases, continue to disagree.

Some economists believe that the central bank will not take further action in that direction and purchase program will remain at 200 billion pounds. Other economists are less optimistic about economic recovery, and they expect to increase the program purchases. “We believe that the next step will be to increase the program quantitative easing in the amount of 50 billion pounds at the end of this year or, more likely, early next year as it becomes clear that the private sector is not prepared to compensate the negative effects of tightening fiscal fiscal policy “, – said Vicky Redwood, an economist at Capital Economics.

Anrey Torbinski
2010-07-04 16:04, Economics.

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