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Monetary Policy Holds Still for BoE an ECB

by on January 9, 2014 9:14 pm GMT
 

Monetary policy held as the Bank of England (BoE) and European Central Bank (ECB) decided to keep interest rates at historical lows. The BoE kept interest rates low as the economy continues to pick up some steam, yet this is still leaving traders foaming at the mouth for higher rates. With the economy expanding three percent, in annualized terms, BoE Governor Mark Carney wants to be sure the economy can continue to plow forward as some analysts believe the recent growth is unstable.

The Monetary Policy Committee (MPC) left rates at .5 percent, and the seven percent unemployment threshold still remains in place – a point to which higher rates could become possible. The quantitative easing program remains the same with £375 billion in debt purchases.

ECB President Mario Draghi still warns that the eurozone is still in trouble while keeping the benchmark rate at the .25 percent low. Draghi pledged to keep rates as low as possible and as long as needed. “the Governing Council strongly emphasizes that it will maintain an accommodative stance of monetary policy for as long as necessary,” said the top-man at the ECB.

Recent data out of the eurozone is still hit-or-miss, and countries like Spain, Italy and Greece are still struggling a great deal.