"Our forecast is that they [Monetary Policy Committee] are done with QE, but you can't rule out more later this year"
- Ross Walker, an economist at Royal Bank of Scotland Group Plc
The Bank of England kept rates on hold and refrained from additional stimulus on Thursday. The Monetary Policy Committee boosted asset purchase facility to 325 billion pounds in February. Rates have been at 0.5 per cent since 2009.
"They're trying to signal a transition away from a mild dovish bias toward a more normal stance," said Ross Walker, an economist at Royal Bank of Scotland Group Plc in London.
"Our forecast is that they're done with QE, but you can't rule out more later this year. They could get blown off course if market conditions deteriorate."
"The combination of sluggish activity and sticky inflation put the MPC in a difficult position, and this decision is likely to have been a close call," said Ian McCafferty, chief economic adviser to the CBI.
"With economic conditions subdued, and signs of euro-area tensions building again, another round of QE cannot be ruled out."
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