Bank of England

September 23, 2021

The Bank of England’s message was much like the Fed’s. While keeping the base rate pinned at 0.10% and maintaining quantitative stimulus at the recent pace, there were two, up from one, dissenters who favored cutting back the central bank’s pace of government bond purchases. A released statement revised down projected third-quarter British GDP growth to 2.1% from 2.9%, citing Covid, but also strikes a more worried tone about inflation, which they believe will be twice the 2% target by yearend and stay above 4% until around mid-2022.

At its previous meeting, the Committee judged that, should the economy evolve broadly in line with the central projections in theĀ August Monetary Policy Report, some modest tightening of monetary policy over the forecast period was likely to be necessary to be consistent with meeting the inflation target sustainably in the medium term. Some developments during the intervening period appear to have strengthened that case, although considerable uncertainties remain.

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

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