LONDON – Bank of England policymakers agreed at their last meeting that the British economy does not need a further stimulus following signs of improvement.
Minutes to the Sept. 5 meeting of the Monetary Policy Committee show the nine policymakers voted to maintain the monetary stimulus and interest rates.
The meeting was the first since new Bank governor Mark Carney introduced the concept of “forward guidance” on interest rates. Though the minutes released Wednesday indicated that policymakers think growth is improving, they were less united on how soon the economy will have fully-recovered from the financial crisis.
In response to the crisis, the bank cut its main interest rate to a record low of 0.5 per cent and pumped 375 billion pounds ($600 billion) into the British economy through its quantitative easing program.