The BOE has left the interest rate unchanged at 0.10% and the QE program at £645 billion. The Monetary Policy Committee has been united around the decision, voting unanimously. The corporate bond target is at £10 billion, unchanged as well.
The BOE has left the door open to expand its asset purchase program – print more pounds. It also foresees a rapid rise in unemployment across a range of economies, with a risk of long-term damage to the economy.
GBP/USD is trading around 1.1965, off the highs recorded earlier.
The Bank of England has already convened twice this month for unscheduled decisions, in response to the coronavirus crisis. The first decision was overseen by outgoing governor Mark Carney, and the second one by the current head of the bank, Andrew Bailey.
The BOE slashed rates from 0.75% to 0.10% – the lowest in the BOE's 300+ year history. It also announced an additional £200 billion in new Quantitative Easing and also launched a lending scheme.
GBP/USD was advancing ahead of the release, flirting with 1.20. Jerome Powell, Chairman of the Federal Reserve, said that the Fed will not run out of ammunition. US jobless claims are eyed.
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