BoE maintains ultra-low interest rate, QE

The Bank of England (BoE) Monday voted to keep its main interest rate bank rate unchanged at 0.5 percent, and quantitative easing (QE) policy at 375 billion pounds (583 billion U.S. dollars).

The decision is within the market's estimation consensus.

The BoE cut the interest rate to a record low of 0.5 percent in March 2009, to mitigate impacts brought about by the financial turmoil and the euro zone sovereign debt crisis.

The previous change in the size of that QE scale, or asset purchasing program, was an increase of 50 billion pounds to total 375 billion pounds in July 2012.

Martin Beck, senior economic advisor to the EY ITEM Club, comments in a note: "With the monetary policy committee meeting in the immediate aftermath of the general election, the decision to keep the bank rate on hold was eminently predictable."

"But, the general election aside, even the committee's hawks will have struggled to see any justification for hiking rates. Inflation remains resolutely absent, the long-awaited revival in pay growth continues to be elusive and signs of weakness in the global economy further caution against tighter monetary policy," he added.

British consumer prices index (CPI) grew zero percent in the year to March 2015, the second month of stagnation, according to the Office for National Statistics (ONS).

The minutes of this month's policy meeting will be published March 20. On Wednesday, the BoE will release its quarterly inflation report, updating its inflation forecast and growth expectation. (1 pound=1.56 U.S. dollars) Endit