The Bank of England left policy unchanged yesterday, sticking to its commitment to keep interest rates at rock bottom until the UK recovery is firmly established.
The central bank has kept rates at a record low 0.5 percent since March 2009 to shore up an economy battered by the financial crisis and a heavy overhang of debt.
The bank’s monetary policy committee also opted to leave its bond-buying programme unchanged at £375 billion (R6.1 trillion), as expected by all economists polled.
Britain has enjoyed a surprisingly strong recovery since the start of the year, overtaking its euro zone peers to become one of the fastest-growing Group of Seven economies.
But Mark Carney, the Canadian who took the helm of the central bank in July, has made clear that he does not want to jeopardise growth by tightening policy too early.
In August, the Bank of England said it would not think about raising rates until Britain’s unemployment rate fell to 7 percent. – Reuters