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Bank holds back on emergency cash
The Bank of England kept its quantitative easing programme at 325 billion pounds
The Bank of England has held back from pumping more emergency cash into the economy amid hopes that the UK has avoided a technical recession in the first three months of the year.
The Bank's Monetary Policy Committee (MPC) kept its quantitative easing (QE) stock at £325 billion, after injecting £50 billion in February, while holding interest rates at a record low of 0.5%.
The MPC's April meeting follows a number of positive surveys that have suggested the economy returned to growth in the first quarter of the year.
But the upbeat mood in the City was jolted by figures showing a surprise contraction in manufacturing activity in February.
Many economists still expect another multibillion cash injection from the Bank later in the year, possibly in May and despite American counterparts at the Federal Reserve increasingly moving away from further QE.
Minutes of a meeting published on Tuesday showed fewer members of the Fed said more QE in the US could be necessary in the future. This shook world markets, with the FTSE 100 Index down by more than 2% on Wednesday.
In London, two of the MPC's nine members are likely to have repeated calls for an additional £25 billion QE boost during Thursday's meeting. But they will have been outgunned by those who do not want to rush into pumping more money into the economy as it could push up inflation.
The UK's recovery has shown tentative signs of gathering pace, particularly after the powerhouse services sector grew at a faster-than-expected rate in March. But the economy shrank by a bigger than previously thought 0.3% in the final quarter of 2011, while influential forecaster the OECD said there was a further contraction of 0.1% in the first three months of this year, meaning the economy was back in recession.
Most economists think growth will be sluggish and lacklustre for at least the next three months, while there are also doubts as to whether inflation will fall back to its 2% target in the coming months, as the Bank has predicted.
Inflation eased to 3.4% in February from its peak of 5.2% in September and its continued reduction is seen as being key to the recovery because it will alleviate the squeeze on consumers and spark a rise in spending.
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3 years of this - great for the mortgage.
Simon - Your savings can't be eroded, they just won't grow as much.
Keep up the good work Cameron.
CAN,T ANYTING THEN CAN YA, SOD OFF BANKS.
DAM ALL POLITICIANS TO HELL. ALL OF THEM.
MPS EQUALS = I TELL OTHER HUMAN BEINGS NOTHING BUT LIES, FOR A LIVING FOR SOME OTHER PURPOSE, TO FOOL THE PEOPLE.
NO I DONT WANT ANYTHING TO DO WITH THAT, YOU CAN KEEP IT. I HOPE IT ALL GOES **** UP, BECAUSE YOU NEED TO LEARN A LESSON ABOUT MONEY WITH THIS GENERATION, AS THAT IS ALL YOU PEOPLE ARE BOTHERED ABOUT, YOU ARE GREEDY HUMANS.
HOW MUCH MONEY IS ENOUGH FOR YOU TO LIVE AS A HUMAN BEING
massively arrogant of life and living.
but all the english snobby toffs do, is lie there areses off but would have you believe they are good people.
i hate the english snobbery, it is that excactly that which tearing the heart out of england.
sod emm all in banks, they are ruining life, and they know it.
GREED HAS RUINED YOU / TO SOFT THIS DAY AND AGE / GET OFF ON MURDER / ENGLAND THE ISLAND OF CHICKENS AND NO COURAGE OR STRENGTH JUST LIES, THAT IS ALL THEY ARE LIES.
TAKE YOUR CASH AND CREDIT AND STICK IT UP YOUR ARSE.
SOD OFF BANKS.
GET CREDIT --------- WHY YOU ARE ONLY GOING TO FIDDLE IT.
SOD OFF BANKS.
YOU ARE MONEY MAD IN ENGLAND.
What do you want Simon? Britain is an expensive place to live...always has been. Wealth is relative to how you live. Wages were lower 20 years ago but things were cheaper, the minimum wage was £3.60 when it came in...now it's over £6 because of inflation. What do you want?
For too long savers have suffered, it's time for them to see some return better than inflation for their hard earned savings. Many of those who are now savers paid mortgage interest of up to 15% when they were buying their homes and PPI on top which they can't reclaim because of the start date for claims.
House buyers, although they may not think it, have never had it so good when you also include the fact that house prices have gone down for many years. So make hay while the sun shines.
There should be a Government owned Peoples Bank. Paying and charging reasonable interest rates, lending to those who need a mortgage and can afford the 5% deposite. Not all these hair brain schemes the Government is coming out with or, the public bailing out Banks/Bankers for them to award themselves £M's in bonuses.
Cameron's Clowns & Clegg's Cronies - enough said
Tried to answer you Chris x, not a fool , no cash. wouldn't let me post for some reason. Not abusive. Enjoy Easter weekend Regards
It's just a saying Ted, i didn't mean you were a fool it's just don't buy into nonsense like the big society when the big society won't help you in your daily life. It won't help you pay the mortgage and it won't take you for dinner or say I love you :)
I pay my tax thanks Ted. I contribute. I pay for stuff I don't use or need like buses, schools, libraries. I never said my mortgage was low, it's just lower but because i'm responsible it means if the rates go up then i will budget accordingly. As for in it together, if you bought that line then you are a fool. Every person looks after themselves and their family and screw the rest. You want rates higher so you can be more wealthy, very selfish of you (naturally) but illustrates my point. You would screw next door for your own benefit.
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