The Bank of England, as expected, kept monetary policy unchanged: the interest rate at 0.10% and the total purchase program at 895,000 million pounds. The decision was unanimous.
The monetary authority indicated that global growth has been stronger than expected. Despite that, they view the economic outlook as unusually uncertain.
Should the inflation outlook weaken, the BoE said it was ready to act. The central bank stated that they do not intend to adjust monetary policy until there is clear evidence of inflation progressing towards the target in a sustainable way.
The pound weakened in the market after the BoE’s pronouncement was known. EUR / GBP climbed above 0.8560, while GBP / USD fell below 1.3950. Analysts note that there was no “hawkish” bias, which had emerged as a possibility after the statements of the bank’s governor, Bailey at the start of this week.
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