Bank of England holds rates, no change on QE

The Bank of England on Thursday kept interest rates at a record low of 0.5 percent and made no increase to its unprecedented scheme of pumping money into an economy struggling to get back on its feet.

The decision was widely expected and analysts expect no change in monetary policy until much later this year as the central bank waits for a clearer recovery from the worst economic downturn since World War 2.

If anything, BoE policymakers have left the door open to more monetary easing in the form of expanding their 200 billion pound scheme to buy assets with newly created money -- quantitative easing in the jargon -- if the economy worsens.

The BoE cut rates to their current record low and started QE last March when the economy was still reeling from a global credit crunch. >>