Quantitative Monetary Stimulus Raised in the U.K.

November 5, 2020

The Bank of England’s Monetary Policy Committee left its bank rate steady at 0.10% but augmented the program of government bond purchases by GBP 150 billion to GBP 875 billion. The bank rate earlier this year was cut 50 basis points on March 11 and by a further 15 bps eight days later to its current level. Today’s MPC policy votes were made unanimously. A released statement observes that Covid infections in the U.K. have risen sharply since the committee last met in September, and CPI inflation is likely to hover around 0.5%. Officials also published their quarterly Monetary Policy Report in which the projected GDP contraction in 2020 was revised to 11.0% from an estimated 9.5% slide in the prior report.

Copyright 2020, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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