Bank of England holds off new economic stimulus

[August 02, 2012]  LONDON (AP) -- The Bank of England has held its key lending rate at the all-time low of 0.5 percent for the 42nd month and announced no new investment in its economic stimulus program.

Thursday's announcement by the Bank's Monetary Policy Committee was widely expected.

The MPC had discussed cutting the bank interest rate to 0.25 percent including in July, according to minutes of the monthly meetings.

With Britain stuck in recession for three quarters, some analysts expect a further shot of stimulus later this year. The latest round of asset purchases, or quantitative easing, is expected to be completed in November. So far the Bank has authorized 375 billion pounds ($583 billion) for the program.

[Associated Press]

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