After two between meetings rate cuts, it was hardly surprising that the Bank of England stayed pat on monetary policy today. The central bank voted to keep interest rates on hold at record low levels of 0.1% after two cuts in eight days up to March 19. During this time the BoE had also ramped up its bond buying to purchase £200 billion extra, measures taken in an attempt cushion the blow from the coronavirus hit to the economy.
The BoE in its accompanying statement today said that it stood ready to expand asset purchases further if necessary.
Given the big gun announcements and large swings that we have seen over the past few weeks, today’s meeting was quite the non-event, with the pound steadily advancing post meeting.
The BoE highlighted the uniqueness of the economic outlook, unlike any crisis that the central bank has had to navigate through before. The BoE predicts a sharp hit to global GDP through the first half of the year….