BoE halts quant easing, holds rates at 0.5%

The Bank of England has shocked the City by freezing its quantitative easing programme and keeping interest rates on hold.

The central bank's base rate will remain at 0.5% for the fifth consecutive month. Monetary policymakers were widely expected to expand quantitative easing measures, designed to stimulate the economy. It was thought the MPC would extend its quantitative easing programme by £25bn to a grand total of £150bn. Currently, the BoE has pledged £125bn in quantitative easing support, but this is expected to run out within the next two weeks, prompting the need for further cash. Recent hopes of recovery have been dented by falling stock markets and suggestions economic growth wi...