The days of September are ending and as October begins the Bank of England’s Monetary Policy Committee (MPC) will meet again for their monthly meeting.  In the next month’s meeting economists believe that the policymakers will leave the standard base interest rate set at the current and long standing level of 0.5%.  The expectation comes on the heels of rumors that circulated last month that perhaps another decline in the rate could happen.  These rumors were quickly put to rest as the Governor of the Bank and MPC members shot down any possibility of a cut occurring.

There is also likely to be a hold on any further quantitative easing (QE).  Some economists believe that the double dip recession will be ending at the conclusion of the third quarter which occurs with the close of September.  Once data from Q3 is reviewed the policymakers and Bank Governor Sir Mervyn King are expected to announce that there are signs of recovery occurring.  The recovery will not be dramatic but a pull out of the recession will be an achievement.  The total QE already put into the economy an amount of £375 million.

The boost to the economy and lifting it out of the recession is being credited to the Olympics.  Without any further expectation of sustained consumer spending and strong economic growth the Bank of England has made it known that they could possibly add another round of QE toward the end of the year to keep the economy from slipping backward again.  There could be another £50 billion QE released into the economy in November.