Bank of England holds interest rates and QE

City A.M. Reporter
The Bank of England kept the bond buying programme on hold today, as the economy is showing signs of growth.

At a two-day meeting, the Monetary Policy Committee made no change to its current plan to buy £50bn of UK government bonds, taking the total asset purchase programme to £375bn, by November.

"Pressure for immediate further stimulative action has been eased by the economy recently showing signs of modest underlying growth," said Howard Archer, economist at IHS Global Insight.

"With any recovery currently looking feeble and fragile, we expect the MPC to decide to give the economy a further helping hand in November," he added.

The central bank also left interest rates on hold at a record low of 0.5 per cent, where it has been since March 2009.