FXstreet.com (Barcelona) - The Bank of England Monetary Policy Committee voted unanimously to maintain interests rates at 0.50% as well as continue its £200 AFP bond-purchase program, designed to stabilize ailing banks, according to the minutes of its December 10th rate-setting meeting released today.
As far as the overall economic outlook for the UK, the committee found that even though there had been some positive developments in the short term, these were relatively minor ones by comparison to the uncertainties surrounding the medium-term outlook. Even so, the committee was still deemed that a second upward revision of 3Q GDP was also seen as likely.
All nine members agreed to keep interest rates at their all-time low with inflation under control as a substantial degree of spare capacity in the British economy was likely to remain a powerful restraint to inflation for some time.
While the bond-purchase scheme was maintained, the committee let it be known that it would continue to monitor closely the evidence of its effect on the economy since the full impact of the program would be felt only with lag.