Bank of England Kept the Policy Rate Unchanged

The Bank of England kept the policy rate unchanged. The bank did not change the interest and left it at the level of 0.1 percent.

The Bank of England kept the policy rate unchanged. The bank kept the policy rate at 0.1 percent and left the asset purchase program at £ 875 billion. The Central Bank pointed out that it will keep the corporate bond purchases at the level of £ 20 billion. Stating that the economic outlook in the UK is still uncertain, the bank noted that the current monetary policy stance is in line with the conditions. The Central Bank stated that they expect the UK economy to contract by 4 percent in the first three months of 2021, and said that they do not intend to tighten monetary policy unless conditions improve. The bank also called on other banks to start preparing for negative interest. However, it was noted that the call in question did not mean a rapid turn in politics. Authorities continue to search for an alternative to the interest rate policy, which has been on a negative course for about a year. As a result of negotiations with banks, it was concluded that the implementation of negative interest rates within 6 months would bring operational risks to the agenda. The Sterling moved upwards with the expectation that the negative interest rate policy would not be implemented in a short time.