BoE opts against further monetary stimulus

BoE opts to keep interest rates steady and refrains from boosting stimulus programs

Associated Press

LONDON (AP) -- The Bank of England has opted against pumping more money into the British economy.

The decision Thursday by the central bank's main policymaking body had been widely expected. The policymaking committee also opted to keep the main interest rate unchanged at 0.5 percent.

Recent figures showing that Britain avoided its third recession in four years reined in expectations the Bank would make more asset purchases. The Bank has splashed out 375 billion pounds ($583 billion) since 2009 buying government bonds from financial institutions in the hope they will lend more and boost growth.

Nevertheless, there is an expectation that the bank will try to do more to stimulate the British economy when Bank of Canada head Mark Carney replaces current governor Mervyn King this summer.

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