The Bank of England’s Monetary Policy Committee announced today it would not renew its bond buyback program, paving the way for the end of its quantitative easing program.
Interest rates remained unchanged and although bond buybacks have stopped, the recovery will not be smooth sailing just yet thanks to the EU as a whole.
WSJ: Analysts had widely expected the BOE to pause its £200 billion ($317.96 billion) quantitative-easing program. A poll by Dow Jones Newswires found that 17 of 19 economists surveyed forecast the MPC would not extend the policy at this week’s meeting, but they remained wary about the prospect of further easing.
It’s far from certain that Thursday’s decision marks an end to the stimulus effort, and the MPC could reopen the program if a lack of credit availability, the need for aggressive fiscal consolidation or a renewed pickup in unemployment threatens to end the U.K.’s weak economic recovery. “The committee will continue to monitor the appropriate scale of the asset purchase program and further purchases would be made should the outlook warrant them,” the MPC said in a statement.