BoE judged that “the existing stance of monetary policy remains appropriate”. Bank Rate was held unchanged at 0.10%. Total target stock of asset purchase were also kept at GBP 895B. Both decisions were unanimous.
It also pledged to “stands ready to take whatever additional action” if inflation outlook weakens. Also, it maintained “the Committee does not intend to tighten monetary policy at least until there is clear evidence that significant progress is being made in eliminating spare capacity and achieving the 2% inflation target sustainably.”
The central bank noted that the roll out of coronavirus vaccines is “likely to reduce the downside risks to the economic outlook from Covid”. But Q4 GDP is likely to be a “little weaker than expected” due to increase in Covid cases and associated re-imposition of restrictions
Outlook remains “unusually uncertain”, depending of “revolution of the pandemic and measures taken to protect public health, as well as the nature of, and transition to, the new trading arrangements between the European Union and the United Kingdom”.
