Bank of England holds interest rates steady

[December 10, 2009]  LONDON (AP) -- The Bank of England is holding interest rates steady at 0.5 percent and leaving its 200 billion pound ($325 billion) program to expand the money supply unchanged.

Thursday's decision by the British central bank had been widely anticipated by economists.

Economic data has been largely positive since the committee last month added 25 billion pounds to its so-called quantitative easing program, which boosts the money supply by effectively creating new money to buy assets.

Analysts expect the bank to wait until the current program runs out in January before considering whether to expand the program and to keep interest rates at the current record low level for several months.

[Associated Press]

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