BOE: Rates, QE Unchanged, Global Growth Stronger Than Expected

Bank Rate unch at 0.1%, QE stock unch at combined GBP 895bn; decision unanimous

BOE: Global GDP growth slightly stronger than expected in Feb

BOE: Outlook remains unusually uncertain

BOE: Labour market slack higher than implied by jobless rate

BOE sees CPI rising to target in spring

The BOE voted unanimously to leave the Bank Rate and the amount of QE unchanged in the Mar meeting. The MPC judges that the outlook remains unusually uncertain, dependent on the evolution of the pandemic and how households, businesses and financial markets react to these developments. They further noted that global GDP growth was slightly stronger than expected in the Feb report and stated that the US fiscal stimulus program should provide a support to the outlook. The aggregate UK financial conditions have been broadly unchanged from the Feb report. Moreover, the BOE sees consumption growth slightly stronger in the near-term than was anticipated in the Feb report. The extension of the CJRS scheme is likely to lead to a slower increase in unemployment in the near-term, than was projected in the previous MPC report. The BOE further states that it "does not intend to tighten monetary policy at least until there is clear evidence that significant progress is being made in eliminating spare capacity and achieving the 2% inflation target sustainably".