bank of england set to hold rates after upbeat data
Last Updated : GMT 03:09:26
Arab Today, arab today
Arab Today, arab today

Bank of England set to hold rates after upbeat data

Arab Today, arab today

Arab Today, arab today Bank of England set to hold rates after upbeat data

London - AFP

The Bank of England is expected Thursday to hold record-low interest rates and its quantitative easing cash stimulus, after encouraging British economic growth data and despite fresh moves elsewhere to loosen monetary policy, dealers said. The nine members of the British central bank\'s Monetary Policy Committee (MPC) -- which includes governor Mervyn King who steps down next month -- will cast their votes on Thursday at the conclusion of their regular two-day meeting in central London. The BoE\'s key lending rate has stood at a record low level of 0.50 percent for more than four years, while it has also injected £375 billion ($582 billion, 443 billion euros) under its quantitative easing (QE) stimulus programme since March 2009. King, who will be replaced by Canadian central bank chief Mark Carney in July after he retires from the role, has called at the previous three meetings for more emergency QE to stimulate economic growth and fend off the threat of recession. However, recent official data showed that Britain has avoided falling into its third recession since the 2008 global financial crisis. British gross domestic product (GDP) expanded by 0.3 percent in the January-March period, rebounding from a 0.3-percent contraction in the fourth quarter of 2012, in a major boost to Prime Minister David Cameron\'s coalition government. The economy -- which has been hit hard in recent times by government austerity measures and the eurozone debt crisis -- outperformed market expectations for more modest first-quarter expansion of 0.1 percent. The technical definition of a recession is two successive quarters of economic contraction. \"The odds favour the Bank of England continuing to hold off from more stimulus on Thursday,\" said IHS Global Insight economist Howard Archer. \"GDP growth of 0.3-percent quarter-on-quarter in the first quarter and an improved set of purchasing managers\' surveys for April has eased pressure on the Bank of England for immediate further action to support the economy.\" However, he cautioned that the committee could still decide to implement another tranche of QE cash, in line with recent calls by Mervyn King. \"It is by no means a nailed-on-certainty that the MPC will sit tight on Thursday, and it is far from inconceivable that they could go for a further £25 billion of QE.\" Since the last BoE gathering, the British government has overhauled and extended its \"funding for lending\" scheme (FLS) in a bid to boost the flow of credit from banks to struggling small businesses, and thereby aid economic growth The Bank of England and the Treasury last month revealed that the FLS will now make central bank funds available for an extra year, until January 2015. \"A resumption of quantitative easing (QE) looks unlikely this month,\" said Capital Economics analyst Vicky Redwood. \"The preliminary estimate of first-quarter GDP was better than expected and some MPC members will feel that they have done enough to support the economy by extending the Funding for Lending Scheme. \"Accordingly, Mervyn King looks unlikely to get his wish for more asset purchases fulfilled before he leaves at the end of June,\" she added. Britain, though not a member of the eurozone, counts the single currency bloc as its main trading partner and has therefore been struck by fallout from the region\'s ongoing sovereign debt crisis. Added to the picture, the European Central Bank last week trimmed its key interest rate to a record low level of 0.50 percent as it sought to boost the crisis-hit eurozone. Also last week, the US Federal Reserve maintained its stimulative monetary policy stance. And this Tuesday, the Reserve Bank of Australia (RBA) cut rates to a record low. \"We are in era of global ultra-easy monetary policies which is unprecedented in the modern era,\" said VTB Capital economist Neil MacKinnon. \"However, tight fiscal policies designed to reduce government debt levels pulls in the opposite direction, as far as the impact of economic growth is concerned. \"In the UK, the economic outlook is still uncertain and requires a looser monetary policy,\" he added.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

bank of england set to hold rates after upbeat data bank of england set to hold rates after upbeat data

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

bank of england set to hold rates after upbeat data bank of england set to hold rates after upbeat data

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today PNG police start removing refugees

GMT 03:00 2017 Friday ,24 November

PNG police start removing refugees
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Syria congress to go ahead

GMT 02:24 2017 Friday ,24 November

Syria congress to go ahead
Arab Today, arab today IS media offline for a day

GMT 02:10 2017 Friday ,24 November

IS media offline for a day
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Human form of 'mad cow' disease

GMT 00:11 2017 Friday ,24 November

Human form of 'mad cow' disease
Arab Today, arab today British woman jailed in Iran to appear

GMT 03:19 2017 Friday ,24 November

British woman jailed in Iran to appear
Arab Today, arab today 'Trash islands' off Central America indicate

GMT 20:19 2017 Friday ,24 November

'Trash islands' off Central America indicate
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mitsubishi Materials units falsified product

GMT 03:24 2017 Friday ,24 November

Mitsubishi Materials units falsified product
Arab Today, arab today 'Robo-taxis' hold promise, and perils

GMT 08:07 2017 Thursday ,23 November

'Robo-taxis' hold promise, and perils
Arab Today, arab today Solaf happy for participating in “Hotline”

GMT 07:56 2017 Wednesday ,22 November

Solaf happy for participating in “Hotline”
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead

GMT 08:03 2017 Tuesday ,21 November

Abeer Sabry reveals reason of “The Flood” success

GMT 08:03 2017 Thursday ,23 November

Srebrenica women cry tears of joy

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 09:12 2017 Thursday ,23 November

4 in 10 cancers due to modifiable risk

GMT 10:47 2017 Wednesday ,22 November

The Big Apple bike boom

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday