Breaking: BoE leaves policy rate and QE unchanged as expected


The Bank of England's (BoE) Monetary Policy Committee (MPC) decided to leave the benchmark interest rate unchanged at 0.10% at its March policy meeting and kept the Asset Purchase Facility steady at £895 billion as widely expected.

Follow our live coverage of the BoE policy announcements and the market reaction.

Market reaction

The GBP/USD pair edged modestly lower with the initial reaction and was last seen losing 0.12% on the day at 1.3950.

Key takeaways from policy statement as summarized by Reuters

"UK GDP fell by 2.9% in January."

"This was less weak than expected, due mainly to developments in public sector output."

"The news in recent plans for the easing of restrictions on activity may be consistent with a slightly stronger outlook for consumption growth."

"The bank intends to purchase evenly across the three gilt maturity sectors."

"Committee continued to envisage that the pace of purchases could remain at around its current level initially, with the flexibility to slow the pace of purchases later."

"Should market functioning worsen materially, the Bank of England stood ready to increase the pace of purchases to ensure the effective transmission of monetary policy."

"In the coming months, the Bank of England would provide more information about its proposed approach to adjusting the corporate bond purchase scheme to account for the climate impact of the issuers of the bonds it held."

"If the outlook for inflation weakened, the committee stood ready to take whatever additional action was necessary to achieve its remit."

"The MPC did not intend to tighten monetary policy at least until there was clear evidence that significant progress was being made in eliminating spare capacity and achieving the 2% inflation target sustainably."

"Risk management considerations had implied that policy should lean strongly against downside risks to the outlook."

"All members of the committee judged that the existing stance of monetary policy remained appropriate."

"Since the MPC’s previous meeting, the news on near-term economic activity had been positive, although the extent to which that news changed the medium-term outlook was less clear."

"Different MPC members placed different weights on the balance of risks around the outlook."

"Outlook for inflation would depend critically on the path of supply."

"Many of the adverse effects on potential output from the pandemic were likely to be temporary, with the same factors that would raise output in coming quarters also being likely to lift supply."

"There was a range of views across MPC members on the degree of spare capacity in the economy currently."

"There was judged to be a material degree of spare capacity at present."

"Outlook for the economy, and particularly the relative movement in demand and supply during the recovery from the pandemic, remained unusually uncertain."

"Aggregate measure of UK financial conditions had been broadly unchanged since the February report."

"Advanced economy longer-term government bond yields had risen rapidly to levels similar to those that had been seen shortly before the pandemic, for the most part this had reflected higher real yields."

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.

Feed news

Are you new to trading or have been trading for a while and you feel stuck?

Try with us!
Become Premium!
   

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD struggles above 1.2050 inside rising wedge

EUR/USD is holding steady below 1.2100, wavering inside a bearish chart pattern. MACD also teases sellers but key EMAs add to downside filters. Bulls have a bumpy road to recovery, 1.2200 becomes crucial resistance.

EUR/USD News

GBP/USD: Bulls lookig for breakout to the topside

Following the progression of the price action and market structures across the various time frames in GBP/USD, it can be concluded that the bulls are now in the most favorable position. The daily chart offers compelling upside bias as bears start to run out of juice.

GBP/USD News

Dogecoin price spikes on Musk tweet, renews momentum for DOGE to test $1

Dogecoin price closed below the critical April high yesterday, putting the pursuit of $1.00 in doubt. The new Elon Musk tweet has reversed the descent and raises the potential of DOGE closing today with a bullish engulfing day.

Read more

EUR/USD struggles above 1.2050 inside rising wedge

EUR/USD is holding steady below 1.2100, wavering inside a bearish chart pattern. MACD also teases sellers but key EMAs add to downside filters. Bulls have a bumpy road to recovery, 1.2200 becomes crucial resistance.

EUR/USD News

Why US retail sales will rock the markets on Friday

It was a rollercoaster ride in the financial markets this week and volatility is not expected to subside tomorrow with the April US retail sales report scheduled for release. investors are eager to see how well the consumer is holding up.

Read more

Forex MAJORS

Cryptocurrencies

Signatures