Breaking news: MPC holds on QE

THE Monetary Policy Committee decided not to pump more money into the economy at its last meeting before the Budget.

It confirmed forecasts from analysts that it would hold its position after expanding its quantitative easing programme by £50bn last month.

The commitee also held the base rate at 0.5% which has now been unchanged for three years.

Coverage of the MPC is brought to readers of TheBusinessDesk.com in associated with stockbrokers Redmayne-Bentley.

Senior stockbroker David Scott said: “There were no surprises in today’s well flagged announcement. Three years ago when the Bank cut interest rates to 0.5% the City was of the belief that such low rates would be short-lived, with borrowing costs rising again in early 2010 and reaching 3% by 2012.

“Currently markets do not expect the bank rate to increase until the end of 2013, although given the lacklustre nature of our economy and European problems even this could be premature as views growth that more QE will be sanctioned before the summer is out.”