8/6/2020, 8:00 AM (Source: TeleTrader)
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BoE keeps interest rate unchanged

The Bank of England announced on Thursday that its Monetary Policy Committee voted unanimously to leave the interest rates unchanged at 0.10%. In addition, the committee was united when it came to the extension of the United Kingdom government and corporate bond purchase program at the same level of £745 billion.

The central bank warned that the economic outlook remains uncertain and will "depend critically" on how the COVID-19 pandemic develops. The central projection sees the gross domestic product recovering beyond the near term, although it is not expected to reach 2019 levels until the end of next year. Business investment and employment are also anticipated to gradually rise with the support of substantial fiscal and monetary policy actions. The risks to the outlook for GDP are judged to be skewed to the downside, the bank noted.

"The Committee will continue to monitor the situation closely and stands ready to adjust monetary policy accordingly to meet its remit. The MPC will keep under review the range of actions that could be taken to deliver its objectives," the committee stated, noting that it will not tighten monetary policy until there is "clear evidence that significant progress is being made in eliminating spare capacity and achieving the 2% inflation target sustainably."

Baha Breaking News (BBN) / MD