Amid speculation about possible action by the Bank of England (BoE), after the pound hit a historic low this Monday (26), the institution released a statement.
The BoE says it monitors developments in financial markets “very closely, in the face of significant repricing in financial assets.”
BoE Chairman Andres Bailey’s statement notes that in recent weeks the UK government has made “a series of important announcements” as a plan to support growth.
The BoE reaffirms that the role of monetary policy is to ensure that demand does not outstrip supply to lead to more inflation in the medium term.
As the BC board has already made clear, it “will give a full assessment at its next scheduled meeting of the impact on demand and inflation of the government’s announcements, and the fall in the pound, and act accordingly.”
The BoE added that it “will not hesitate to change interest rates as necessary for inflation to return to the 2% target on a sustainable basis over the medium term.”
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
