RTTNews - Policymakers of the Bank of England unanimously decided to retain the key interest rate at 0.5% and continue with the asset purchases scheme totaling GBP 125 billion using central bank reserves, the minutes of the Monetary Policy Committee meeting showed Wednesday. The meeting was held on June 3 and 4.
The minutes revealed that it is too early to assess the impact of the asset purchase programme on nominal demand. The central bank had acquired just less than GBP 80 billion of assets financed by the issuance of central bank reserves. The central bank will take another two months to meet the GBP 125 billion target for purchases.
The MPC continued to expect annual inflation to fall back over the remainder of 2009, moving below the 2% target.
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