(Alliance News) - Bank of England on Thursday said its policymakers unanimously voted to keep monetary policy unchanged in light of the challenges posed by the coronavirus pandemic.
The BoE's nine-member Monetary Policy Committee all voted to keep the UK's key interest rate at 0.1% and asset purchases at GBP745 billion, as widely expected.
The central bank noted global activity has strengthened over recent months, but generally remains below its level in late 2019. Covid-19 has continued to spread rapidly within a number of emerging market economies, however, and there has been a renewed rise in cases in many advanced economies, the bank highlighted.
"The outlook for the UK and global economies remains unusually uncertain. It will depend critically on the evolution of the pandemic, measures taken to protect public health, and how governments, households and businesses respond to these factors. The MPC's projections assume that the direct impact of Covid-19 on the economy dissipates gradually over the forecast period. Given the inherent uncertainties regarding the evolution of the pandemic, the MPC's medium-term projections are a less informative guide than usual," the BoE said.
"The committee will continue to monitor the situation closely and stands ready to adjust monetary policy accordingly to meet its remit. The MPC will keep under review the range of actions that could be taken to deliver its objectives. The Committee does not intend to tighten monetary policy until there is clear evidence that significant progress is being made in eliminating spare capacity and achieving the 2% inflation target sustainably," the BoE added.
The pound was trading at USD1.3144 in the wake of the decision, unchanged from late Wednesday.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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