BoE voted unanimously to keep Bank Rate unchanged at 0.1%, as well as keeping asset purchase target at GBP 645B. The MPC will “continue to monitor the situation closely and, consistent with its remit, stands ready to respond further as necessary to guard against an unwarranted tightening in financial conditions, and support the economy.”

The central bank said that the “nature of the economic shock” from coronavirus pandemic is “very different from” those the central bank has previously had to respond to. The “scale and duration” will be “large and sharp but should ultimately prove temporary”. Monetary policy is now aimed at “guarding against an unwarranted tightening in financial conditions and, more broadly, supporting businesses and households through the crisis and limiting any lasting damage to the economy.”

Full statement here.

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