Bank of England leaves policy unchanged

AP News
Posted: Aug 01, 2013 7:03 AM

LONDON (AP) — The Bank of England has kept its monetary policy unchanged amid signs that the recovery in Europe's third largest economy is gaining momentum.

In a statement Thursday, the bank confirmed it was leaving its main interest rate at 0.5 percent and would not pump more money into the economy.

The policy meeting was the second under new bank Gov. Mark Carney. Markets are looking to next week's quarterly projections from the bank and Carney's first press conference for any steer about future policy.

There will be interest in Carney's view on a further monetary stimulus. The bank has pumped 375 billion pounds ($579 billion) into Britain's economy since 2009 in the hope of boosting lending.

The unchanged decision comes after figures showed Britain grew 0.6 percent in the second quarter.