Base rate at 0.5pc for 33rd month

Nia Williams

November 10, 2011

The Bank also did not announce any increase in its policy of Quantitative Easing. Last month the Bank said it would inject another £75bn into the economy through QE.

Lee Hopley, chief economist at EEF manufacturers’ organisation, said: “There were unlikely to be any further announcements this month following last month’s decision to extend the Bank’s asset purchase programme.

“However, ahead of the November inflation report the committee is likely to be looking at a much weaker set of growth forecasts, where the potential risks to the economy have increased significantly.

“With growing turbulence in Europe, the possibility of further action can’t be taken off the table.”

Last month, Bank governor Mervyn King said the financial crisis could be the worst the UK has ever seen.

Fionuala Earley, UK consumer economist at Royal Bank of Scotland, said: “Steady as she goes, or not wanting to rock the boat? The Inflation Report will shed more light on the Bank’s interpretation of the situation.

“But there is no doubt that the monetary authorities will be considering their policy options given the depleting arsenal of ammunition at their disposal, particularly in the face of the ongoing eurozone crisis.”

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