The Bank of England's (BOE) Monetary Policy Committee (MPC) decided to leave the policy rate unchanged at 0.1% at its June policy meeting as expected. Furthermore, the BOE held the Quantitative Easing (QE) program unchanged £745 billion.
Follow our live coverage of the BOE event and the market reaction.
Market reaction
The GBP/USD pair refreshed intraday high to pierce 1.3143, up 0.24% on day, following the widely-anticipated rate announcement.
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GBP/USD moves back closer to multi-month tops, around 1.3165 region post-BoE
Key takeaways from the policy
Although recent developments suggest a less weak starting point for the Committee's latest projections, it is unclear how informative they are about how the economy will perform further out.
The outlook for the UK and global economies remains unusually uncertain.
Given the inherent uncertainties regarding the evolution of the pandemic, the MPC's medium-term projections are a less informative guide than usual.
Global activity has strengthened over recent months, although it generally remains below its level in 2019 Q4.
UK GDP is expected to have been over 20% lower in 2020 Q2 than in 2019 Q4.
Employment appears to have fallen since the Covid-19 outbreak, although this has been very significantly mitigated by the extensive take-up of support from temporary government schemes.
The Committee will continue to monitor the situation closely and stands ready to adjust monetary policy accordingly to meet its remit.
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