By Marcus Leach
The Bank of England's Monetary Policy Committee have voted against increasing quantitative easing, whilst the interest rate remains unchanged at 0.5%.
The decision had been widely predicted, with most analysts not expecting any change in policy until the new Bank governor, Mark Carney, arrives in July.
In addition, recent data has suggested the UK economy is picking up. Figures from the Office for National Statistics released earlier on Thursday, said industrial output rose 0.7% in March from February, a bigger increase than forecast. Manufacturing output rose by 1.1%.
“More money means more growth. That’s the lesson of recent months. Broad money growth remains weak but it has picked up over the past 6 months and this should sustain GDP growth through the second half of 2013," Graeme Leach, Chief Economist at the Institute of Directors, said.
"We think GDP growth this year could be 1% or more, double the OBR’s forecast. We’re not experiencing a V shaped bounce back, but the outlook does appear to be better than the L shaped recovery of recent years. Consequently we see no reason to change monetary policy at present.”
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