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MNI BoE Review: May 2021

MNI BoE Review: May 2021

Spurred on by the progress made on vaccinations and the better-than-expected response of the economy to fresh lockdown restrictions in Q1, the Bank of England significantly revised the 2021 growth forecast and sounded constructive about the economic outlook. The decision to reduce the weekly pace of asset purchases was a technical adjustment to satisfy the existing target and timetable for asset purchases. Nonetheless, when considered alongside the economic message, the decision on the purchasing pace suggests that the direction of travel is towards eventual policy normalisation rather than additional stimulus (assuming that the recovery unfolds as expected). Moreover, while the outgoing Chief Economist Andy Haldane's vote to reduce the stock of asset purchases should be not be overplayed, it again nonetheless reflects a shift in policy bias at the margin.

For the full publication please see:

BoE Review May 2021.pdf

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