From aground to awash

10 September 2009 By Ian Campbell

Surprise! Eccentricity was absent from the Bank of England s monthly statement. Massive stimulus and moneyprinting has now fostered a tentative economic recovery. But the BoE has also reached the limits of what monetary policy can achieve.

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After its monthly policy meeting, the Bank of England's Monetary Policy Committee kept the overnight interest rate at the record low 0.5% for the sixth consecutive month. The UK central bank also said it would continue with with its programme of asset purchases totalling £175bn, financed by the issuance of reserves.

UK's manufacturing output rose by 0.9% from June to July. The annual contraction in output was 10.1%.

The UK's trade deficit narrowed slightly in July to £6.48bn from an upwardly revised £6.52bn in June. Exports rose by 5% from June to £19.2bn, the biggest increase since January 2008. Spending on imports rose by 3.5% from June to £25.67bn.

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