Bank Of England (BOE) Keeps Interest Rates At 5%

Following the lead of the Federal Reserve, the Bank of England kept interest rates low at .5%. It is certainly a sign that the BOE believes that the U.K. is nowhere near an economic recovery. As a matter of fact, the BOE may be worried that the global economy has slowed, that that the effects of this could spread to the U.K. where government austerity measures have likely constrained GDP improvement

In its statement, the BOE said:

The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%.  The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £375 billion.