Covid has hit spending, incomes and jobs in the UK. It has put a big strain on UK businesses’ cash flow, and is threatening the livelihoods of many people. Our job is to ensure inflation (the pace of price rises) returns to our 2% target sustainably. Low and stable inflation supports jobs and growth and helps people plan for the future. In response to the Covid pandemic, we have taken prompt and substantial action to help households and businesses. We are supporting the economy through low interest rates and quantitative easing. This keeps the cost of borrowing low to support households and businesses. In the early ... (full story)