Bank of England keeps rates unchanged

AP News
Posted: Nov 07, 2013 7:01 AM

LONDON (AP) — The Bank of England has decided to keep its key interest rate at a record low of 0.5 percent as it monitors the economy's strengthening recovery.

The Monetary Policy Committee also voted Thursday to refrain from pumping more money into the economy. The bank has so far pumped 375 billion pounds ($600 billion) into the economy since January 2009.

The decision had been widely expected because of the bank's new "forward guidance" policy, which new Governor Mark Carney introduced this summer.

The guidance offers markets, individuals and businesses a clear steer on where interest rates will be in coming months.

Carney has indicated rates will remain low until unemployment — currently at 7.7 percent — drops significantly to a 7 percent threshold.