The Bank of England today maintained its key interest rate at a record low of 0.5 per cent.
The European Central Bank probably will say at 1.45pm. in Frankfurt that it kept its benchmark at 1 per cent, a survey of analysts showed. Yesterday, the Federal Reserve restated its pledge to keep rates "exceptionally low" for an "extended period."
The Bank of England also raised its bond-purchase plan by £25 billion, the third increase since March, as policy makers try to cement Britain's recovery from its longest recession on record.
The nine-member Monetary Policy Committee, led by Governor Mervyn King, today raised the amount of bonds it will buy with newly created money to £200 billion.
"On balance, the committee believes that the prospect is for a slow recovery in the level of economic activity, so that a substantial margin of under-utilised resources persists," the central bank said in a statement.
"That will continue to bear down on inflation for some time to come."
The Bank of England is weighing signs that the economy is shaking off the slump against risks the flow of credit isn't strong enough to underpin a revival. Prime Minister Gordon Brown's government this week pledged more money to help two of the UK's biggest banks, boosting the scale of the world's most expensive bailout less than seven months before an election.
The Bank of England has already bought £175 billion of assets.
Bloomberg