Interest rate decision day
- 00:00:56
- ITN
Interest rate decision day
The Bank of England is due to announce a decision about interest rates and quantitative easing at midday today. Economists have suggested that while interest rates are likely to remain at 0.5 per cent, the Bank of England would increase the amount of money pumped into the economy from £175 billion to £225 billion. The Bank of England 's injection of 175 billion pounds to date hasn't yet pulled Britain out of recession, and the central bank now faces a difficult decision on whether to raise the stakes. The bank's monetary policy committee began its monthly two-day meeting yesterday. Markets are waiting to see if the amount will be increased, and if so, by how much. Some think the bank could add 25 billion pounds or more. "The decision appears finely balanced, although expectations are tilted towards an extension," said Simon Hayes at Barclays Capital. The decision comes two weeks after disappointing news that UK gross domestic product, or economic output, fell by 0.4 percent in the third quarter, contrary to expectations that the economy would move into growth.
ITN | November 5, 2009
