"It [asset purchase extension] is a good decision and they need to do it because the recovery is taking so long"
- George Buckley, an economist at Deutsche Bank AG
The Bank of England extended its asset purchasing program by 50 billion pounds to 375 billion pounds on Thursday, citing deterioration of economic conditions. The bank also kept the key interest rate unchanged at 0.5 per cent.
"It's a good decision and they need to do it because the recovery is taking so long," said George Buckley, an economist at Deutsche Bank AG in London.
"This is as much a decision to offset the future downside risks from the euro area as it is to try and support the rather flagging recovery."
"Against the background of continuing tight credit conditions and fiscal consolidation, the increased drag from the heightened tensions within the euro area meant that, without additional monetary stimulus, it was more likely than not that inflation would undershoot the target in the medium term," the BoE said in a statement.
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