Bank of England decides against extra stimulus

8 March 2013

The Bank of England (BoE) has chosen not to inject more stimulus into the British economy.

Interest rates have been kept at 0.5 per cent by the Monetary Policy Committee (MPC) - a move that means rates have remained at an historic low for four years.

The decision to reject more stimulus came despite the BoE coming under increasing pressure to expand its quantitative easing programme and to provide additional support for the economy.

Fears have been raised that the UK could be on the verge of slipping into its third recession since the onset of the financial crisis - and policymakers are looking at numerous different ways in which the economy can be boosted.

Stephen Gifford, director of economics at the Confederation of British Industry, told BBC News: "A combination of mixed economic data and the MPC's recent tilt in a more dovish direction is likely to have made this decision a close call."

By Asim Shah

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