THE DAILY TELEGRAPH: Bank of England policymakers have kept interest rates at 0.5pc and decided against pumping more money into Britain's ailing economy by opting not to restart gilt purchases.
The Bank said on Thursday that the key interest rate and bank rate would be held at a record low of 0.5pc and its asset purchase total would remain at £375bn.
The Monetary Policy Committee had been expected to leave interest rates on hold at 0.5pc, but economists believed there was a strong possibility that it would increase its quantitative easing programme by £25bn, taking it to a total of £400bn.
James Knightley, an economist at ING, had been expecting a £25bn increase. But, he said the "steep fall in sterling seen in recent weeks may have made the Bank of England more cautious".
The pound had come under pressure this morning, dropping to its lowest level in more than two and a half years against the dollar amid growing signs the Bank could welcome more easing.
But, sterling made a sharp recovery after the Bank's announcement, spiking back above the key $1.50 level. » | Rachel Cooper, and agencies | Thursday, March 07, 2013
