- Weak Dollar Is Golden for Mining Companies
- How Many US Consumers Will Shop this Weekend?
- Tuesday's Heavy Dose of Data to Dictate 'Risk' Behavior
- World's Largest Share Issue Priced at Deep Discount
- GE Capital Losses May See Dramatic Fall: JP Morgan
- Obama says Boosting US Jobs is Top Priority
- Why the Dollar Will Likely Stay Weak for Some Time
- Playboy to Outsource Most Magazine Operations: Report
- General Motors to Cut up to 9,500 Jobs in Europe
- Can Murdoch Help Bing Challenge Google and Shift the Content Equation?
- HP's Mark Hurd
- HP Comes in As Expected; Is It Time to Buy?
- 9 Stocks That Play Rising Water Costs: Strategists
- Weis' Deal Likely Won't Change Big Money Contracts
- Gold Prices Can Double in 3 Years: Portfolio Manager
- Nov. 23: Unusual Volume Leaders
- Help Wanted—Please Run $4 Billion University
- Apple Comes to AT&T's Rescue
MOST SHARED
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- Why Amazon Rules Retail
- Wave of Debt Payments Facing US Government
- China Eastern to Complete Shanghai Air Buy by End '09
- Paul: Audit the Fed
- Gold Will Collapse Like Oil Did in 2008: Charts
- The Social Media Gaming Threat
- Prepare For Large Decline In Stocks, Next Year?
- JAL Slides to Record Low on Bankruptcy Jitters
- Nielsen Ratings Coming to Video Games
Text Size 
The Bank of England expanded its quantitative easing program by 25 billion pounds to 200 billion pounds on Thursday, continuing its unprecedented scheme to revive Britain's recession-hit economy.
Sterling shot up around a cent against the dollar and government bonds tumbled as many investors had expected a bigger expansion of the eight-month-old program to buy assets, mostly UK government bonds, with newly-created money.
The BoE, which also left interest rates unchanged at a record low of 0.5 percent as expected, said the bond-buying would take another three months to complete and analysts said that would probably mark the end of the program.
 |
Sharon Lorimer |
"We suspect that this will be the final extension to the QE program unless the economy suffers a major relapse in 2010," said Howard Archer, economist at IHS Global Insight.
While the BoE noted that numerous surveys had indicated that a pick-up in the economy was in sight, it still believed the prospect was for "a slow recovery in the level of economic activity." "That will continue to bear down on inflation for some time to come, offset in the short run by the impact of the past depreciation of sterling," the BoE said in a statement.
Two-thirds of analysts polled by Reuters had predicted the central bank would expand its asset-buying scheme, but opinion had been split evenly on whether the increase would be 25 billion or 50 billion pounds.
"The Bank seems to be weaning the market off QE and we strongly suspect that — barring any further negative surprises to economic growth — this will be the last installment of the program," said George Buckley, economist at Deutsche Bank.
Britain's economy remained mired in recession in the third quarter. The United States, Germany and France have already started growing again.
The European Central Bank will make its own interest rate decision at 1245 GMT and on Wednesday the U.S. Federal Reserve signaled that it would keep interest rates at near zero for some time to come.
- A diet high in fat and sugar might actually be good for your portfolio.
- Warren Buffett and Bill Gates discuss the economy and other subjects with CNBC's Becky Quick.
- From the AIG&T to the Merrill Lychee, Jane Wells lists this year's fashionable holiday cocktails.
- One shopper explains why – aside from the prices – he gets up at 3am on the day after Thanksgiving to go shopping every year.
- Congressman Ron Paul explains to Squawk Box why he’s pushing legislation to audit the Federal Reserve.
- …you'll want to be prepared. Tips for getting the most out of the post-Thanksgiving shopping frenzy.
Data is a real-time snapshot *Data is delayed at least 15 minutes