Newspaper article The Journal (Newcastle, England)

Same Again at Bank of England

Newspaper article The Journal (Newcastle, England)

Same Again at Bank of England

Article excerpt

BANK of England rate-setters have underlined their doubts over a strong recovery as they maintained support for the economy at emergency levels and kept interest rates on hold.

The Monetary Policy Committee (MPC) held rates at their record low 0.5% - where they have been since March 2009 - and left its programme to boost the money supply unchanged at pounds 200bn.

The committee was unswayed by the UK's rapid 1.1% advance in GDP estimated between April and June, with growth expected to fade in the second half of 2010 as the impact of Chancellor George Osborne's emergency Budget kicks in. The Bank is keeping its foot firmly on the accelerator to compensate for the slower growth in prospects because of the savage cuts. And Governor Mervyn King also stressed the uncertainty over the world economy and a recent tightening in credit conditions before the Treasury Select Committee last week.

He warned that policymakers could not be confident recovery would be "sustained" adding the debate was still "about the appropriate degree of stimulus, not about applying the brakes". …

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