Leaves rates, QE stock increased, One For.......>

BOE: Leaves rates, QE stock increased, One For Unchanged QE

--Bank Rate unchanged at 0.1%, QE stock increased to GBP 745bn

--Bank Rate decision unanimous; Haldane voted for unchanged amount of QE

--BOE sees risk of higher and persistent unemployment

--BOE expects additional QE to be completed at year end

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The BOE voted unanimously to leave the Bank Rate unchanged in the Jun meeting,

but voted by a majority of 8-1 to increase QE by GBP 100bn. Andrew Haldane voted

for an unchanged amount of QE. The MPC noted that the fall in global and UK GDP

in Q2 2020 will be less severe than set out in the May report. However, there is

a downside risk from the spread of Covid-19 within emerging market economies and

from a second wave in advanced economies. The MPC further notes a risk of higher

and persistent unemployment. They see CPI falling further below the target in

the coming quarters, mainly due to weak demand. Moreover, the MPC expects

additional QE purchases to be completed by the end of the year.