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Bank of England keeps rates, stimulus on hold

October 10, 2013

LONDON (AP) — Bank of England policymakers have kept their interest rates steady and declined to pump more money into Britain’s economy amid signals of recovery.

The Monetary Policy Committee kept the benchmark interest rate at a record low 0.5 percent and voted to not increase the monetary stimulus program. The bank has pumped 375 billion pounds ($600 billion) into the economy since January 2009 through its bond-buying program.

The decision announced Thursday was widely expected. Governor Mark Carney has said the bank would refrain from raising rates until unemployment falls from the current 7.8 percent to 7 percent. The bank estimates that this could take about three years — but economists have suggested the policy could end sooner than planned if the economy continues to show signs of revival.