Bank holds rates and QE ahead of landmark report

The Bank of England (BoE) has held interest rates for the 53rd consecutive month and opted not to increase the size of its £375bn QE programme at its July meeting.

The Bank had been expected to keep policy unchanged in Mark Carney's second meeting as governor, having last month issuing guidance telling investors not to expect a rise in interest rates in the near future. That statement said: "The implied rise in the expected future path of Bank rate was not warranted by the recent developments in the domestic economy." The change in that implied path, suggesting the UK base rate could rise in late 2014, had been triggered by signals the US Federal Reserve may slow down its own QE programme later this year. No statement was issued alongside tod...