No more QE and base rate held at 0.5%

The Bank of England’s Monetary Policy Committee (MPC) has held base rate at 0.5% for the 20th month in a row and has also held its quantitative easing programme at £200 billion.

The news follows the US Federal Reserve’s decision to pump an extra $600 billion (£373 billion) into the economy in the next eight months to bolster its economy.

The previous change in base rate was a cut from 1% to 0.5% on March 5, 2009. (article continues below)

A programme of asset purchases financed by the issuance of central bank reserves was initiated on March 5, 2009. The most recent change in the size of that programme was an increase of £25 billion to a total of £200 billion on November 5, 2009.