The Bank of England’s Monetary Policy Committee has voted unanimously to hold its key interest rate at 0.1%, with the central bank now forecasting a stronger outlook for GDP growth and inflation.
GDP growth is now expected to reach 7.3% in 2021, while the inflation rate expected to jump from 0.7% closer to the bank's 2% target in Q2 and Q3, according to the May MPC report. The bank also voted unanimously to maintain its stock of sterling non-financial investment grade corporate bond purchases at £20bn, while MPC member Andy Haldane was the sole opponent to maintaining the target for government bond purchases at £875bn. Haldane's preference was to continue with the existing programme of UK government bond purchases but to reduce the target for the stock of these purchases from ...
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