The Bank of England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. In that context, its challenge at present is to respond to the economic and financial impact of the Covid pandemic. At its meeting ending on 4 November 2020, the MPC voted unanimously to maintain Bank Rate at 0.1%. The Committee voted unanimously for the Bank of England to maintain the stock of sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, at £20 billion. The Committee voted ... (full story)

The Bank of England’s Monetary Policy Committee has voted unanimously to maintain Bank Rate at 0.1%, but say that a "further easing of monetary policy is warranted". The Committee agreed to increase the target stock of purchased UK government bonds by an additional £150 billion, taking the total stock of government bond purchases to £875 billion. The MPC noted the "rapid rise in rates of Covid infection" since its last meeting and expects that "Covid will weigh on near-term spending to a greater extent" than projected in the August Report, leading to a decline in GDP in Q4. UK trade and GDP are also likely to be ... (full story)