The Bank of England (BoE) has announced it will maintain its current bond purchase program at £4.4 billion per week and keep interest rates unchanged.
- The BoE will continue its existing quantitative easing (QE) policy, buying government bonds to lower yields and stimulate investment and spending.
- The decision coincides with forecasts indicating the UK economy is on track to reach the 2% inflation target, with part of the improvement attributed to progress in the COVID-19 vaccine rollout.
- The Monetary Policy Committee voted unanimously to hold the Bank Rate at 0.1%, contrasting with recent comments from US officials that signalled the possibility of earlier rate adjustments in other economies.
Sources cited
Bank of England — Monetary Policy Report (May 2021)
New York Times — Coverage on interest-rate outlooks (May 2021)