Forex Blog

February 17, 2010

BOE Voted 9-0 to Pause Bond-Purchases on Inflation

Central Bank of England BOE

Bank of England

Bank of England policy makers unanimously agreed to pause their 200 billion-pound ($313 billion) bond-purchase plan this month on optimism that inflation will return to their 2 percent target.

“The February projections did not imply an overwhelming risk of inflation being below the target over the forecast period, and so did not suggest an immediate need for a further relaxation of the policy stance,” the bank said in minutes of the Feb. 4 meeting published today. Still, “for some members, the arguments were very finely balanced.”

Policy makers are trying to judge the strength of the recovery as rising unemployment clouds the outlook months before an election and inflation fluctuates. The Bank of England reiterated today that officials can “provide further monetary stimulus” if warranted.

Bloomberg

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