The Bank of England has held interest rates at a record low and also decided not to implement more quantitative easing.
Sir Mervyn King has pushed for QE, who has been arguing the case for more monetary stimulus in recent months but was out voted on every occasion, however it is unclear how he voted today until the minutes are published. Minutes from the 2 day meeting will be published on June 19th.
Today was his last Monetary Policy Commission meeting as Governor as he is now due to retire. He has been heading the Monetary Policy Commission that sets the base rate of interest for the country for the last 16 years. King has voted at every single meeting that decided the country’s interest rates since the Bank of England became independent in 1997.
Mark Carney has been appointed by George Osborne as the next Governor of the Bank of England. The position is normally held for an 8 year period but Carney has hinted that he may step down after 5 years.
Economist Phillip Shaw said that: “Attention will now focus on whether the signs of an upturn in the domestic economy are genuine and the direction in which the incoming Governor, Mark Carney, nudges his committee.”
Because of the signs of growth in the British economy financial experts aren’t surprised by the decision to not put implement more QE. Economists expect Mark Carney to try to convince the MPC to help to fix the UK economy by keeping interest rates low.