Bank of England’s Unorthodox Monetary Policy: No Change Again
Posted by hkarner - 10. Juli 2009
- July 9: Bank of England (BoE) kept the bank rate on hold at 0.5% and will maintain £125 billion asset purchase program as planned despite many expecting a small increase in the amount to £150 billion, the maximum allowed.
- BoE has the broadest form of unconventional monetary policy among the major central banks as it seeks to boost broad as well as narrow money, private credit, and reduce bond yields for both the public and private sector. However, the scale of its program was small. BoE began with £75 billion (5% of GDP) in March 2009, with access to another £75 billion later (BNP). Compared to the Bank of Japan and Fed though, the BoE’s program is the largest as a percentage of nominal GDP (21.4%). (BNP Paribas)