Tuesday, September 8, 2009

BOE to maintain interest rates

LONDON, Sept 8 (Reuters) - The Bank of England looks

certain to keep interest rates at a record low 0.5 percent next

week and hold its quantitative easing programme at 175 billion

pounds after last month's shock 50 billion pound expansion.

Although recent surveys suggest conditions are stabilising,

lending remains weak and rising unemployment and future

government spending cuts mean growth is likely to be subdued for

some time -- lessening the urgency for policymakers to start

unwinding their stimulus measures.

The BoE will make its announcement at 1100 GMT on Thursday

following the conclusion of its two-day Monetary Policy

Committee meeting.

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