Bank of England Leaves Interest Rates, Asset Buying Unchanged
The Bank of England left interest rates at 0.5% for the 20th month in a row and maintained its asset-buying program unchanged, Reuters reported.
The interest rate decision was widely expected by economists. Still, mixed economic data and a divided policy-making board mean that the future is uncertain for the asset-buying program.
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The U.K economy posted growth of 1.2% in the second quarter, but is likely to slow in the second half of the year. Meanwhile, the Conservative-led coalition government is planning to enact the largest spending cuts in decades.
These factors, along with the recent statements of the Federal Reserve and the Bank of Japan, may prompt the Bank of England to extend or increase its stimulus measures.
British house prices slid a record 3.6% in September, according to mortgage lender Halifax.
