Bank Of England Holds Key Rate At 0.25%, As Expected

By Carla MozeeMarketsMarketWatch Pulse

The Bank of England on Thursday left unchanged its key interest rate at a record low 0.25%, meeting widely held expectations. The central bank also left unchanged the size of its quantitative easing program at �435 billion ($576 billion). Last month, the central bank launched a stimulus package that included plans to buy corporate bonds and offer ultracheap loans to banks, as it aimed to shield the British economy from pressure stemming from the Brexit vote in June. "Overall, while the evidence on the initial impact of the policy package is encouraging, the Committee will monitor closely changes in asset prices and in interest rates facing households and firms and their effect on economic activity," the BOE said in a statement. The pound traded at $1.3242 compared with $1.3236 just before the BOE's policy decision was released.

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