2010.09.0908:08:00UTC+00BoE Retains Key Rate, GBP 200 Bln Bond Purchase

The Bank of England on Thursday left its key interest rate unchanged at a record low again and maintained the size of the quantitative easing at GBP 200 billion.

At the end of two-day rate setting meeting, the Monetary Policy Committee decided to retain the interest rate at 0.5%. The current rate is the lowest since the central bank was established in 1694. The decision came in line with economists' expectations.

"It is likely that Andrew Sentance was the lone dissenter, once again arguing that economic conditions have improved that a move away from "emergency" levels of interest rates is justified," said ING Bank NV's James Knightley.

Policy makers also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at GBP 200 billion. The minutes of the meeting will be released on September 22.

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