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.
The GBP/USD pair refreshed intraday high to pierce 1.3143, up 0.24% on day, following the widely-anticipated rate announcement.
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.