The BoE, Bank of England, confirmed its monetary policy. As expected, in today’s meeting the British central bank left the reference rates unchanged at 0.10%, also confirming the target of the plan for purchases of government bonds, at a value of 875 billion pounds. The decision was unanimous with regard to rates, while seven out of eight members voted on Quantitative Easing to leave it unchanged (hence the opposite).
Inflation in Britain exceeded the 2% target, with prices rising 2.5% in June. The BoE expects further inflation to rise in the coming months, but reiterated that the hike will be temporary.
“Vaccines are supporting spending, jobs and incomes to recover from the effects of Covid – the BoE note reads – The size of the British economy is getting closer to pre-Covid levels”.
The next Bank of England meeting is scheduled for 23 September.