The coalition Government has pledged to cut the country’s budget deficit, currently at almost 11pc of GDP, at a “significantly accelerated” pace – starting with £6bn of cuts this year – and most analysts expect no change in monetary policy until the end of this year at the earliest as the central bank seeks to asses the fall-out from the Budget on June 22 and from the eurozone debt crisis.
The Monetary Policy Committee also maintained the Bank’s bond holdings of £200bn, having put its quantitative easing programme on hold four months ago.
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