Bank of England increases asset purchase program

[May 07, 2009]  LONDON (AP) -- The Bank of England has kept official interest rates on hold at a record low of 0.5 percent -- but has increased its program to buy back assets to increase the domestic money supply.

At the end of its monthly rate-setting meeting on Thursday, the bank said it is increasing the size of its so-called quantitative easing program by 50 billion pounds ($75.4 billion) to 125 billion pounds.

The bank says that the world remains in "deep recession," but there are some "promising signs that the pace of decline has begun to moderate."

[Associated Press]

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