LONDON, Jan 10 (Reuters) - The Bank of England decided to keep its powder dry on Thursday, vot
ing as expected against buying more government bonds despite an economy on the verge of another contraction.
Following are reactions to the decision:
JOOST BEAUMONT, ABN AMRO
'We expect that the central bank will refrain from further asset purchases, with the focus shifting to the Funding for Lending Scheme.
'There are early signs that this scheme is starting to bear fruit. Meanwhile, global economic conditions seem to be improving, while risks emanating from the euro crisis have diminished. Furthermore, inflation is likely to remain high for longer. '
ANNA LEACH, CBI
'A change in monetary policy was unlikely this month, given the UK economy continues to send out mixed signals.
'We're not expecting any change in monetary policy over the next few months, unless compelling evidence of a renewed downturn emerges.
'Underlying economic conditions remain fairly flat and there are early signs that credit availability is being boosted by the Funding for Lending Scheme.'
(Reporting by UK economics team) Keywords: BRITAIN BOE/DECISION
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