City looks to Bank for clues to future

The Bank of England is expected to keep the City waiting on much-anticipated measures to lift the economy out of the doldrums when it holds its latest interest rate meeting on Thursday.
By The Newsroom
Published 29th Jul 2013, 01:01 BST

Rates are expected to remain unchanged at their historic low of 0.5 per cent while it is thought likely the Bank will hold off on increasing its £375bn quantitative easing (QE) programme of injecting money into the economy.

But all eyes will be focused on whether the Bank’s Monetary Policy Committee (MPC), under new governor Mark Carney, will offer any clues about any future stimulus measures – and of what form these may take.

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Policymakers at Threadneedle Street are discussing the possible use of “forward guidance”, a policy which has been favoured by the new governor.

It is only the second such meeting under Mr Carney’s tenure and the City will be waiting to see whether the committee under his leadership springs a surprise on them.