Thursday, April 4, 2013

BOE leaves rates unchanged; service sector expands.

The Bank of England has left its monetary policy unchanged, with its benchmark rate remaining at 0.5% and its QE program dormant. The decision came after data showed that U.K. services PMI rose to its highest in seven months, increasing to 52.4 in March from 51.8 in February and beating consensus. With the improvement offsetting contractions in manufacturing and construction, the data points to GDP growth of 0.1% in Q1 and the avoidance of a triple-digit recession.