Bank of England 'to hold fire ahead of EU summit'

8 December 2011

The Bank of England will not implement any further quantitative easing (QE) until the future of the eurozone becomes clearer, experts believe.

Later today (8 December), the institution's Monetary Policy Committee will hold its monthly meeting to decide the direction of the UK's interest rates and whether or not the country requires financial stimulus.

The base rate has been held at a historically low level of 0.5 per cent since March 2009 as the nation has struggled in the face of issues such as the global recession and eurozone crisis, while the Bank only launched its last round of QE two months ago.

And, with this in mind, the majority of professionals expect the institution to hold steady on both these areas ahead of the latest summit of EU leaders scheduled for tomorrow.

For instance, Neville Hill of Credit Suisse told Bloomberg: "Policymakers have got to wait and see how the European crisis develops."

By Asim Shah

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