BoE to reinvest £1.9bn gilt proceeds as QE stays on hold

The Bank of England (BoE)has elected to hold the base rate at 0.5% and maintain the size of its quantitative easing (QE) programme at £375bn.

The Bank's Monetary Policy Committee (MPC) left rates at the historic low, where they have remained since 2009, following assurances from senior figures at the central bank in recent weeks. BoE deputy governor Charlie Bean last week said the Bank has sent a "clear signal" interest rates will remain unchanged in the immediate future. Under its policy of 'forward guidance', the Bank last month forecast it would leave the base rate at 0.5% until late 2016, the date at which it expects the unemployment rate will have fallen to 7%. The Bank announced today it will reinvest £1.9bn in cas...