Bank of England opts against another monetary stimulus to revive ailing British economy

Published March 07, 2013

| Associated Press

The Bank of England has opted against injecting more money into the ailing British economy, which has one foot in recession.

In a statement Thursday, the Bank's main policymaking body, the Monetary Policy Committee, decided to maintain its asset purchase program at 375 billion pounds ($563 billion).

A number of economists were expecting another 25 billion pounds infusion. Last month, Governor Mervyn King had pushed for such an increase in monetary stimulus.

Under the program, the Bank buys government bonds from financial institutions. The hope is they use the new money to boost lending and encourage growth.

Critics say it's done little to revive the British economy. Its proponents say it has prevented a depression.

The Bank also kept its main interest rate at the record low of 0.5 percent.