The Bank of England (BoE), which had been expected to taper off bond acquisitions, today announced that bond purchases will continue at a rate of £4.4 billion a week and that interest rates will remain unchanged
- The Bank will continue with its current QE targets – a process where bond prices are inflated to encourage more investment by reducing bond yields
- The announcement arrives as the UK economy is on course to meet its 2% inflation target, with the boost said to have been provided by the Covid vaccine rollout
- The Monetary Policy Committee voted unanimously to keep interest rates at 0.1%, a different approach to the one outlined by US Treasury Secretary, Janet Yellen, about a potential US rate increase
Sources cites
https://www.nytimes.com/2021/05/04/business/economy/janet-yellen-interest-rates.html