For the 20th month running, the Bank of England has decided to keep the base rate firmly at 0.5% and continue it’s £200 Billion quantitative easing (QE) effort – creating money to purchase gilts, assets and high quality private debt.
This time last year, QE was increased by £25 Billion, but the calm this year is thought to be brought on by a stronger-than-expected growth with a much improved performance from the manufacturing sector. However, there are still fears over a slowdown in the economy over the coming months.
Fears are compounded with news that the country’s trade deficit has widened – with imports increasing further against exports.
Inflation also remains high at 3.2%, above the Bank’s target of 2%.