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Bank of England 'unlikely to opt for more QE'

Further quantitative easing (QE) is unlikely to be implemented by the Bank of England (BoE) today (10 May), economists believe.

Later this morning, the BoE's Monetary Policy Committee (MPC) is set to hold its monthly meeting to discuss financial issues such as its asset purchasing budget and the country's base interest rate.

There had been some speculation among analysts earlier this year that May could see policymakers increase the central institution's funds further above £325 million ($524 million) as its last round of QE comes to a close.

However, there is now a widespread feeling among experts this will not be the case and the BoE will instead opt to hold policy after it emerged the UK experienced gross domestic product contraction of 0.2 per cent in the first quarter of 2012.

For instance, 43 of the 51 economists questioned by Bloomberg believe bond purchases will be stopped, with 53 of the 58 asked by Reuters stating the same.

By Gary Cooper