Bank holds off on QE after UK exits recession

The Bank of England has kept interest rates on hold for the 44th consecutive month and refrained from launching a fresh round of quantitative easing after recent data showed the UK exited recession in the third quarter.

The Bank's latest round of quantitative easing, announced in July, came to a close this quarter, with total asset purchases having reached £375bn. Economists had expected further purchases to commence this month but the stronger-than-expected GDP figures released in October saw the majority of those forecasts scrapped. The Office for National Statistics announced at the end of last month that UK GDP for the third quarter of 2012 came in at 1% on its initial estimate, putting an end to three consecutive quarters of contraction. Economists still expect further quantitative easing in ...