- The pound appreciates after the BoE statement.
- Unanimous vote to leave monetary policy unchanged.
- They expect strong recovery in 2021 of the economy.
As expected, the Bank of England (BoE) announced that it left monetary policy unchanged after the meeting of the Monetary Policy Committee. The interest rate remained at 0.1% and the purchase program at 895,000 million pounds. The decisions were unanimous.
The central bank indicated that the current position of the monetary policy is appropriate. He stated that financial markets have been resilient.
They estimate that the PBI it will quickly recover to pre-pandemic levels in 2021. Although they warned that the outlook for the economy remains extremely uncertain. The growth projection for this year fell from 7.25% to 5%.
On inflation They estimate that it will rise rapidly to the 2% target in the spring.
The libra it rose on all fronts possibly driven by the statement reducing the possibility of introducing negative interest rates. The committee members said they did not want to give the wrong signals to the market on this issue. The BoE did not decide to ask the banking regulatory authority to start preparations. I clarify that to do so, it would be in six months that everything is ready to introduce negative interest rates.