Bank of England Maintains Interest Rates and Bond Purchase Plan Unchanged

After the interest rate meeting, the Bank of England announced that it will maintain the benchmark rate at 0.1% and the GBP 895 billion bond purchase plan unchanged, in line with market expectations. The statement after the meeting pointed out that the current monetary policy is still appropriate, and the economy is expected to recover quickly within the year, and as economic activities increase, the idle production capacity in the economy will be eliminated. In addition, the Central Bank also stated that it is now appropriate to prepare for the implementation of negative interest rates when necessary. However, this will not be implemented for at least 6 months. Due to the impact of tightening restrictions to prevent the epidemic, the central bank lowered its forecast for this year’s economic growth to 5%, versus the previous estimate of 7.25%, and pointed out that the economy and inflation are still far below the target, so it is ready to take further actions to assist economic recovery and ensure that inflation is back to the 2% target.

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