Bank of England sticks with the status quo as rates stay on hold

THE Bank of England&rsquo;s monetary policy committee (MPC) unsurprisingly kept interest rates at 0.5 per cent and quantitative easing on hold at &pound;175bn yesterday.<br /><br />The Bank has purchased almost &pound;146bn worth of assets and said it expects the programme to take another two months to complete. Although there were calls last month to extend QE to &pound;200bn, most economists do not see any further changes to the policy until November.<br /><br />But Henderson New Star&rsquo;s Simon Ward said there were reasons for thinking the modest pace of monetary expansion was consistent with a solid recovery in 2010. &ldquo;The MPC should be cautious about expanding asset purchases any further, particularly given uncertainty about the lagged effects of buying to date,&rdquo; he said.