Header Ads

Header ADS

Disagreement Within The Bank Of England Committee On Reducing Large-scale Stimulus Measures / The European Central Bank Announces That All Policies Remain Unchanged

Disagreement Within The Bank Of England Committee On Reducing Large-scale Stimulus Measures

When attending the House of Commons Finance Committee, Bank of England Governor Bailey said that in August the policy committee members who held two different views are equally matched. On the one hand, they believe that the minimum conditions for considering interest rate hikes have been met. On the other hand, they believe that the economic recovery is not strong enough. Strong. Bailey further pointed out that there were only 8 people on the committee last month, indicating that the committee members of the opposite camp are actually 4 to 4. Obviously, Bailey's remarks have rekindled the market's concern that the Bank of England is preparing to scale back large-scale stimulus measures.

The European Central Bank Announces That All Policies Remain Unchanged

After the interest rate meeting on Thursday (9th), the European Central Bank announced that it would maintain interest rates and the scale of bond purchases unchanged, in line with market expectations. But at the same time it was announced that it would slow down the purchase of debt under the Emergency Anti-epidemic Purchase Program (PEPP) in the fourth quarter, the scale will be lower than the previous two quarters, and the total amount of PEPP will remain unchanged at 1.85 trillion euros. Market conditions are flexible to buy debt. The central bank statement stated that it is expected that before the end of the year, economic activities in the region will return to pre-epidemic levels. However, the variant new coronavirus is also spreading globally or postponing a full economic restart. In addition, the central bank also sharply raised its forecasts for economic growth and inflation this year to 5% and 2.2%, respectively, which were higher than the 4.6% and 1.9% forecasts in June. As for the next two years, the inflation forecasts were also raised to 1.7% and 1.5% respectively.
Powered by Blogger.