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rates on hold as Bank keeps spending
April 9, 2009
As expected, the Bank of England kept interest rates at 0.5 per cent today and confirmed that it would continue with its programme of ‘quantative easing' to pump money back in to the economy.
The decision not to change rates came as no surprise, there is precious little room to reduce rates further. Attention was more focused on the Bank's efforts to put money back in to the economy. It confirmed that it had spent over £25 billion on buying company and government debts from investors who wanted cash rather than IOUs. It already plans to spend another £50 billion and could spend a further £75 billion on top of that if it though that was necessary.