Bank of England has kept key interest rates at 0.50%

At the meeting on Thursday, 4 February, the Committee on Monetary Policy Bank of England has kept the rate of compulsory reserves of commercial banks at 0.50%. This decision was predicted by most analysts. At the same meeting it was decided to continue the program of asset purchases, the private sector by the central bank reserves of 200 billion pounds.

In an accompanying statement, Bank of England said that the preservation of the base rate and the volume of purchases of assets at the current level should ensure that the target inflation rate 2% in the medium term. Low rates and a program to purchase assets will continue to provide stimulus to the economy in the near future. The Committee will continue to monitor the effect of the program and increase the volume of purchases, if necessary.

Minutes of committee meetings on monetary policy will be published on Thursday, February 17. The last time the Bank of England rate was reduced by 50 basis points to the level of 0,50% at the meeting of March 5, 2009. Program for the purchase of assets was launched March 5, 2009. The last time the volume was increased by 25 billion pounds to 200 billion pounds at the meeting of November 5, 2009.