Bank of England Leaves Interest Rates, Asset Buying Unchanged

The Bank of England left interest rates at 0.5% for the 20th month in a row and maintained its asset-buying program unchanged, Reuters reported.

The interest rate decision was widely expected by economists. Still, mixed economic data and a divided policy-making board mean that the future is uncertain for the asset-buying program.

The U.K economy posted growth of 1.2% in the second quarter, but is likely to slow in the second half of the year. Meanwhile, the Conservative-led coalition government is planning to enact the largest spending cuts in decades.

These factors, along with the recent statements of the Federal Reserve and the Bank of Japan, may prompt the Bank of England to extend or increase its stimulus measures.

British house prices slid a record 3.6% in September, according to mortgage lender Halifax.

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a low interest rate basically discourages and punishes saving..and that's just wrong! we all need savings to give us a cushion during bad times.

October 07 2010 at 8:09 AM Report abuse rate up rate down Reply