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No rate changes after BoE meeting

Bank of England - No increase in quantitative easing
Bank of England - No increase in quantitative easing

The Bank of England has left UK interest rates at a record low of 0.5%.

After its latest two-day meeting, the bank also left its quantitative easing programme - aimed at boosting the UK money supply - unchanged at £175 billion.

The bank's Monetary Policy Committee (MPC) faced calls this week to increase the scale of its quantitative easing efforts after worse than expected manufacturing figures.

But today's decision was in line with the views of most British economists, who expect the MPC to look again at the impact of the policy next month with the help of the BoE's latest inflation forecasts.

The MPC is weighing up mixed signals on the economy, with rising house prices and stock markets set against a surprise 1.9% fall in manufacturing output during August after two months of growth.

Although the wider economy is expected to return to growth between July and September after five quarters of recession, the Bank's preferred measure of money supply showed sluggish growth during August - casting doubt on whether the QE policy was working.