Bank of England leaves rates at record low

The Bank of England left the benchmark interest rate at a record low and kept up its plan to buy bonds with newly created money…

The Bank of England left the benchmark interest rate at a record low and kept up its plan to buy bonds with
newly created money to pull the economy out of the worst recession in a generation.

The nine-member Monetary Policy Committee, led by Governor Mervyn King, reiterated its plan to buy £125 billion  of government and  corporate bonds.

Policy makers also kept the bank rate at 0.5 per cent.

The Bank of England has now entered its fourth month of money-printing as officials assess mounting
evidence  that the slump is easing while the squeeze on credit persists.

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Reports this week have shown service industries grew for the first time in a year last month, manufacturing improved, consumer confidence increased, and house prices unexpectedly jumped.