September 10, 2009

BOE keeps lending rate unchanged

The Bank of England said Thursday it would maintain its bank-to-bank lending rate at 0.5 percent and continue with a $291 billion program of asset purchases.

The BOE lowered its lending rate to its current, historic low in March to add liquidity to the financial system. It also began a more modest asset purchasing program in March, a $125 billion program, which it expanded in August to the current level.

To date, the bank has made about $243 billion in asset purchases.

In recent policy decisions, the U.S. Federal Reserve and European Central Bank also elected to keep their lending rates unchanged. The U.S. central bank's lending rate is zero to 0.25 percent. The ECB rate is 1 percent.