07 February 2013 12:00 [Source: ICIS news]
LONDON (ICIS)--The Bank of England (BoE) on Thursday held UK interest rates at 0.5% and left quantitative easing (QE) levels at £375bn ($588.8bn, €345bn), as it waits on the results of its latest inflation report.
Defying pressure from the Organisation for Economic Co-operation and Development (OECD) for the bank to bolster the UK’s flagging economic growth with additional QE spending, the bank held back on freeing up any additional funding, despite a 0.3% contraction in the UK’s GDP in the fourth quarter of 2012.
The downturn in economic expansion, which followed a 0.9% uptick in the third quarter of last year, has fuelled fears that the UK may be about re-enter recession for the third time since the onset of the financial crash in 2008.
The bank’s latest report on inflation in the country, which can be influenced by unorthodox monetary policy measures such as QE, is due to be published on 13 February.According to the OECD, the BoE should be ready to unlock more QE spending to buoy the UK’s economic recovery.
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