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Bank of England holds fire on UK rates

Bank of England holds fire on UK rates
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There were no surprises from the Bank of England as it has held its second policy meeting under new governor, Mark Carney.

The UK benchmark interest rate stays at 0.5 percent and the stimulus bond-buying programme was not reactivated.

There was no announcement about providing guidance on how long interest rates are likely to stay low.

That so-called forward guidance is much favoured by Carney as a way to help Britain’s economic recovery, he is due to explain its merits to UK finance minister George Osborne next week.

Forward guidance was something Carney did while in charge of the central bank in his native Canada to offset the impact of the global financial crisis and it has been deployed by the US Federal Reserve and, since last month, by the European Central Bank.

Carney will make his first public comments on Britain’s economy since taking charge of the central bank at a news conference scheduled for next Wednesday.

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