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Home / Business / The Bank of England holds interest rates when new coronavirus lockouts begin

The Bank of England holds interest rates when new coronavirus lockouts begin



A woman wearing a protective mask crosses the street in front of the Bank of England at morning rush hour in the City of London on March 17, 2020. The UK’s financial district is unusually quiet after the government ask everyone to limit everything except for the essential travel and activities yesterday.

Jonathan Perugia

Britain̵

7;s central bank on Thursday kept interest rates steady as the UK entered a new phase of national lockout measures expected to help the country’s economic recovery.

Along with maintaining the main lending rate at 0.1%, the Bank of England Monetary Policy Committee (BOE) (MPC) also voted to expand its asset purchase target to 895 billion. pound.

Last month, the BOE asked UK banks about their readiness for negative rates, revealing in September that they are exploring the possibility of bringing rates below zero if necessary.

Since the outbreak of the coronavirus in March, the Bank has twice cut interest rates from 0.75% to 0.1%.

The UK economy grew 2.1% in August, according to data released by the Office of National Statistics last month, after an unprecedented 19.8% decline in the second quarter in the period. the peak of nationwide door lock measures.

BOE on Thursday forecasts that 2021 GDP (gross domestic product) will increase by 7.25%, down from the + 9% forecasted at the August meeting. However, by 2022, GDP is expected Ants will increase 6.25% from 3.5% in August.

With the domestic spike again, Prime Minister Boris Johnson’s government announced a new lockdown order, running in the UK from Thursday to December 2. On Wednesday, 492 people died in Britain from Covid-19, the highest daily death toll since May. 19, while 25,177 new cases were confirmed.

The government has also expanded its plans to increase support for side workers, with the BOE now expecting the unemployment rate to peak at 7.75% in Q2 2021.


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