Bank of England expected to stick to current policy

6 June 2013

The current governor of the Bank of England Sir Mervyn King is not likely to convince the central bank to start up its bond-buying programme again when he attends what will be his last Monetary Policy Committee meeting later today (June 6th).

Mr King is set to retire from his position later this month after 20 years at the central bank and believes an extra £25 billion ($38.5 billion) of bond purchases should be made to give the UK economy a boost.

Reuters reports the policy makers in favour of such a measure are being outnumbered, as the Monetary Policy Committee is likely to dismiss it due to recent positive signs showing the country's economy is picking up.

Mr King is set to be succeeded by Mark Carney, who stepped down as Bank of Canada governor last week, on 1 July. Many economists expect he will likely commit to keeping interest rates low.

By Gary Cooper

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