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‘Cautious Bank holds powder dry’

NIESR Comment on MPC’s decision to hold Bank Rate at 0.5%

The Bank of England’s decision is disappointing. Angus Armstrong, Director of Macroeconomics, said: “In their communications last week they gave a clear indication to anticipate further monetary accommodation”.

This would also seem to follow from the Financial Policy Committee’s decision to ease the capital requirements for banks.

He added: “The likelihood of monetary easing was subsequently discounted by financial markets. Whatever the economic merits or demerits of cutting interest rates at this juncture, the lack of clear direction is more likely to add to economic uncertainty and therefore be detrimental to demand and the economy

Notes for editors:

For further information and to arrange interviews, please contact the NIESR Press Office:
Luca Pieri on 020 7654 1931 /  

NIESR aims to promote, through quantitative and qualitative research, a deeper understanding of the interaction of economic and social forces that affect people's lives, and the ways in which policies can improve them.

Further details of NIESR’s activities can be seen on or by contacting . Switchboard Telephone Number: +44 (0) 207 222 7665


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