No change for the BoE in May 2011

GECODIA Team

In May 2011, the Bank of England maintains its target rate (at 0.5%) and the quantitative easing program.

No change for the BoE in May 2011
As expected, the BoE let its monetary policy unchanged in May. The target rate stays at 0.5% (stable since March 2009) and the quantitative easing program is maintained at £200 bn (stable since February 2010).

Economic Impacts
The BoE maintains a very accommodative monetary policy despite inflation above 4% YoY. The economic outlook is considered too weak for any tightening. The risk is to fall into stagflation.


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