Today, a meeting of the Bank of England has been hold. From the press release issued after the meeting, it became known that the regulator had decided to keep the base interest rate at 0.1%. This decision was unanimously supported by absolutely all members of the Monetary Policy Committee.
Also, the committee members have agreed on the details of the government bonds buy-back program. It was decided to keep the repurchasing volume at the level of 645 billion pounds. By the way, the vote on this issue was not unanimous. Some members of the committee considered that the volume should be increased by 100 billion pounds.
The Bank of England has also published economic forecasts for the national economy. It is assumed that in the current year, the GDP of the island nation will fall by 14%. However, next year it will win back losses, increasing 15%. Analysts of the regulator have calculated that the unemployment rate could rise to 8%, while the inflation in 2020 will be equal to 0.6%.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group