Bank of England keeps rates low as Government spending cuts loom
Posted on June 9th, 2010
The coalition Government has pledged to cut the country’s budget deficit, currently at almost 11pc of GDP, at a “significantly accelerated” pace – starting with £6bn of cuts this year – and most analysts expect no change in monetary policy until the end of this year at the earliest as the central bank seeks to asses the fall-out from the Budget on June 22 and from the eurozone debt crisis.
The Monetary Policy Committee also maintained the Bank’s bond holdings of £200bn, having put its quantitative easing programme on hold four months ago.
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Tags: Cuts, Cuts Loom
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