"A change in monetary policy was unlikely this month, given the UK economy continues to send out mixed signals"
- Anna Leach, from employers' organisation the CBI
The Bank of England decided not to extend its quantitative easing stimulus programme and left the benchmark interest rate unchanged, despite disappointing news on the U.K. economy in recent days. The key rate stood at 0.5%, where it has been since March 2009, the record low, while the BoE's Monetary Policy Committee voted for not to expanding its QE, as £375 billion were already injected into the economy. The report also showed that, the outlook for the economy is gloomy, suggesting the economic output could contract for the last three months of 2012, raising the prospect of a triple-dip recession.
"A change in monetary policy was unlikely this month, given the UK economy continues to send out mixed signals," said Anna Leach, from employers' organisation the CBI. "Underlying economic conditions remain fairly flat and there are early signs that credit availability is being boosted by the Funding for Lending Scheme (FLS)."
"Most committee members are in data-watching mode, happy to see whether the global economy continues to strengthen and to wait for more information on the effectiveness of the Funding for Lending Scheme," said David Tinsley, economist at BNP Paribas.
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