Bank of England Keeps Policy as Is in Unanimous Vote

February 4, 2021

The Bank of England‘s Monetary Policy Committee had reduced the base rate twice in March 2020, first by 50 basis points and a week later by 15 bps to 0.10%. Today’s statement¬†after maintaining 0.10% and bond-purchase ceilings of GBP 875 billion for gilts and GBP 20 billion of corporate bonds provides the following guidance to future policy:

The MPC will continue to monitor the situation closely. If the outlook for inflation weakens, the Committee stands ready to take whatever additional action is necessary to achieve its remit. The Committee does not intend to tighten monetary policy at least until there is clear evidence that significant progress is being made in eliminating spare capacity and achieving the 2% inflation target sustainably. The Committee judged that the existing stance of monetary policy remains appropriate.

Copyright 2021, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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