February 7, 2013 / 12:21 PM / 5 years ago

Bank of England holds policy, to reinvest maturing QE gilts

LONDON, Feb 7 (Reuters) - The Bank of England made no change to its amount of stimulus for the economy at a policy meeting on Thursday though it voted to reinvest 6.6 billion pounds of its current bond holdings due to mature in March.

After a two-day meeting, the BoE’s nine-member Monetary Policy Committee said its main interest rate would stay at 0.5 percent and that it would keep its gilt purchases at the 375 billion pounds’ worth bought so far.

“Attempting to bring inflation back to target sooner by removing the current policy stimulus more quickly than currently anticipated by financial markets would risk derailing the recovery and undershooting the inflation target in the medium term,” the BoE said in a statement.

None of the 70 economists polled by Reuters last week had expected a change in interest rates or in the BoE’s total target for quantitative easing.

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