In a sign that the Bank of England believe that the economic situation in the U.K. is not entirely dire, it kept interest rates at .5%.
The Committee also voted to increase the size of its asset purchase programme, financed by the issuance of central bank reserves, by £50 billion to a total of £375 billion
That decision, a sort of British QE 2, has not worked entirely for the Federal Reserve.
In its comments the BOE said:
UK output has barely grown for a year and a half and is estimated to have fallen in both of the past two quarters. The pace of expansion in most of the United Kingdom’s main export markets also appears to have slowed. Business indicators point to a continuation of that weakness in the near term, both at home and abroad. In spite of the progress made at the latest European Council, concerns remain about the indebtedness and competitiveness of several euro-area economies, and that is weighing on confidence here. The correspondingly weaker outlook for UK output growth means that the margin of economic slack is likely to be greater and more persistent
All of which should have supported a drop to zero
Douglas A. McIntyre