Economist says Bank unlikely to act this month
Wed, 08 Jul 2009
This month's meeting of the Bank of England's Monetary Policy Committee (MPC) is likely to be a "rather boring" affair, according to Defaqto.
Economist Michael Baxter predicts that the MPC is unlikely to announce any new measures on Thursday.
Last month, the committee decided to keep interest rates at 0.5 per cent for the third month running, while also agreeing to carry on with its £125 billion asset purchasing scheme, but not to extend it.
Mr Baxter said there would be no benefit to reducing interest rates any further, while it is still far too early to consider rising them again.
"I don't see there being any change at all," he predicted, adding that there no reason as yet to think the Bank needs to do more quantitative easing than it has already announced.
However, the British Chambers of Commerce (BCC) today called on the MPC to pursue quantitative easing "aggressively".
Although its Quarterly Economic Survey results for Q2 2009 show that the worst of the recession is over, the BCC says support for the economy cannot be withdrawn.
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