The Bank’s monetary policy committee (MPC) is set to keep its quantitative easing (QE) stock at £325bn, after injecting £50bn in February, and hold interest rates at a record low of 0.5%, reported the Guardian.
The MPC’s April meeting follows a run of positive surveys on the manufacturing, construction and services sectors, suggesting the economy returned to growth in the first quarter of the year.
The Organisation for Economic Co-operation and Development (OECD), however, believes the UK probably entered recession in the first three months of the year.
Despite the tentative signs of improvement and evidence that the Bank’s American counterparts at the Federal Reserve are increasingly moving away from further QE, some economists expect another multi-billion cash injection later in the year.
