MPC takes ‘wait and see’ approach

THE Bank of England took a ‘no change’ stance as it waits to see how new measures from the European Central Bank will impact on the eurozone crisis.

The Monetary Policy Committee agreed to hold the base rate at 0.5% and maintain the value of its quantitative easing programme at £375bn.

Its decision came ahead of ECB president Mario Draghi’s announcement of a new attempt to stop the rot in the Eurozone.

Mr Draghi revealed the ECB would buy bonds on the secondary market in a drive to cut the borrowing costs of the eurozone’s most indebted nations.

The Bank of England has repeatedly warned that the future of the UK economy is tied closely to the fortunes of the eurozone.

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

Senior stockbroker David Scott said: “The UK interest rate decision came as no real surprise, with the announcement taking second place to the news from Europe. 

“What little policy options the MPC has left may well be more needed and have a bigger impact in a month or two’s time.”