QUANTITATIVE EASING

The Bank of England decided on Thursday to stick to its program of pumping 125 billion pounds into the economy, defying expectations it would expand its bond purchases and boosting fears it may be about to end the scheme.

The Bank of England surprised markets on Thursday by keeping its quantitative easing program unchanged at 125 billion pounds, boosting speculation that it may soon finish its unprecedented asset-buying scheme.

The Bank of England surprised markets by announcing no expansion of its quantitative easing scheme on Thursday as it left interest rates unchanged at a record low of 0.5 percent for a fourth month running.

Forecast-beating results from U.S. bellwether Alcoa helped lift European stocks and draw global equities out of the red on Thursday, while currency markets reversed some of their recent cautious patterns.

Asian stocks rallied for a second day on Thursday after the Federal Reserve reinforced that interest rates will be kept at a record low for a while, but Treasuries extended losses as the Fed shied away from boosting debt purchases.

The Federal Reserve on Wednesday stuck to its huge program of buying government and mortgage debt, which is designed to keep borrowing costs low and boost recovery, and said it saw signs that the deep U.S. recession was easing.

The Federal Reserve on Wednesday stuck to its huge program of buying government and mortgage debt and said it saw signs that the deep U.S. recession was easing.

The dollar hit its lowest in nearly two weeks against a basket of currencies and global stocks edged up from five-week lows ahead of a Federal Reserve meeting expected to dampen expectations for higher rates.

Asian stocks bounced up on Wednesday from a one-month low hit the previous day while the dollar drifted, with investors bracing for a Federal Reserve decision and any signs the central bank is worried about the jump in U.S. bond yields.

Asian stocks inched up on Wednesday from a one-month low hit the previous day while the dollar drifted, with investors bracing for a Federal Reserve decision and any signs the central bank is worried about the jump in U.S. bond yields.

The U.S. dollar fell on Tuesday on speculation the Federal Reserve may attempt to keep debt costs low by reducing expectations for higher interest rates at the conclusion of its meeting on Wednesday.

U.S. consumer prices rose slightly in May, but over the past 12 months prices registered the biggest drop in nearly 60 years, allaying fears that inflation could threaten prospects for economic recovery.

The Federal Reserve said on Wednesday it saw modest improvements in the U.S. economy last month, but it still saw big risks and left open the possibility of increasing its purchases of mortgage-related and government debt to keep credit flowing and spur recovery.

The European Central Bank said it will buy up bonds for the first time and trimmed its main interest rate to a record low on Thursday in a bid to stem the euro zone's economic decline and shore up shaky markets.

The European Central Bank cut its main interest rate to a new record low on Thursday, and will buy up bonds for the first time in a bid to stem the euro zone's economic decline and shore up shaky markets.

The European Central Bank cut its main interest rate on Thursday and announced a three-pronged drive of unconventional steps to drive down borrowing costs and get the euro zone economy back on its feet.

The Bank of England left interest rates at a record low 0.5 percent for a second month running on Thursday and said it would increase the size of its asset purchase programme by 50 billion pounds.

The European Central Bank cut its main interest rate on Thursday to 1.0 percent, and financial markets are now focused on any alternative policy measures the ECB reveals to get the euro zone economy back on its feet.

The Bank of England said on Thursday it would increase the size of its asset purchase program by 50 billion pounds to 125 billion pounds, and left interest rates at a record low 0.5 percent for a second month.

World stocks rose on Wednesday and government bonds and the low-yielding yen fell as forecast-beating earnings from European companies spurred share buying ahead of key U.S. growth data.

The Bank of England left interest rates unchanged at a record low of 0.5 percent on Thursday, and said it would take another two months to complete its 75 billion pound quantitative easing program.