Bank of England Opts For Status Quo With No Change to Interest Rates or QE

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Bank of England Opts For Status Quo With No Change to Interest Rates or QE

By Jack Pearson - min read
Bank of England, London

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.bankofengland.co.uk/-/media/boe/files/monetary-policy-report/2021/may/monetary-policy-report-may-2021.pdf?la=en&hash=1392919A865E58C6CED5BA02F8DD3FD8A8BA5CE2

https://www.nytimes.com/2021/05/04/business/economy/janet-yellen-interest-rates.html