Minutes of the Monetary Policy Committee Meeting held on 4 and 5 March 2009

The MPC at its meeting voted to cut Bank Rate to 0.5%. The Committee also voted to finance £75 billion of asset purchases by the creation of central bank reserves.
Published on 18 March 2009

The Governor invited the Committee to vote on the proposition that Bank Rate should be reduced by 50 basis points to 0.5%.

The Committee voted unanimously in favour of the proposition.

The Governor invited the Committee to vote on the proposition that:

  • The Bank of England should finance £75 billion of asset purchases by the creation of central bank reserves. The Bank should seek to make these purchases within the next three months. The scale and timing of purchases would be reviewed at each MPC meeting.
  • Purchases of private sector assets under the Asset Purchase Facility should now be financed using central bank reserves rather than Treasury Bills.
  • The Committee noted that, in so far as purchases of private sector assets fell short of the £75 billion target, the Bank of England would buy gilts to fulfil the overall quantity of purchases.

The Committee voted unanimously in favour of the proposition. 

PDF Minutes of the meeting 

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