"It is getting increasingly hard not to judge that the U.K. growth outlook is at an inflexion point, or even perhaps at ‘escape velocity' as Mark Carney describes it"
- David Tinsley, an economist at BNP Paribas SA
During his second policy meeting as a Governor of Bank of England Mark Carney left borrowing costs unchanged at record low and stayed pat on its bond-buying programme, as Carney trains officials' focus on providing forward guidance on monetary policy, cementing economic recovery. Armed with fresh quarterly economic projections, the Monetary Policy Committee kept the target of its quantitative easing programme at 375 billion pounds, while benchmark interest rate stood at 0.5%, widely meeting analysts' projections. Next week Carney will unveil a review of steering policy expectations. While the domestic economic is gathering pace and the Eurozone recession is showing signs of easing, British policy makers may consider holding stimulus and focusing on giving businesses and household certainty about interest rates to encourage spending.
In a separate report, Markit Economics and the Chartered Institute of Purchasing and Supply said that Britain's manufacturing growth quickens in July, adding to evidence the economy is recovering. A factory gauge jumped to 54.6 last month, up from 52.9 in June, the highest in 28 months, and beating analysts' expectations of a 52.8 reading. In addition to that, growth in production and new orders was the highest since February 2011, while new export business expanded at the fastest pace for two years.
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