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ECONOMICS COMMENTARY Mar 07, 2013

Bank of England keeps monetary policy unchanged

The Bank of England's Monetary Policy Committee voted to keep policy unchanged at its March meeting. Signs of better growth in the service sector alongside above-target inflation is likely to have convinced some members that further stimulus was not appropriate at the moment. However, the concern is that monetary policy alone is proving ineffective in stimulating a meaningful recovery and, given the absence of government initiatives to remove the obstacles still impeding the economic recovery, the outlook is one of further stagnation or modest growth at best.

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