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

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

The post Bank of England Opts For Status Quo With No Change to Interest Rates or QE appeared first on Coin Journal.

scroll to top