The Bank of England have kicked off the day and held their second official rate-setting meeting of the year this morning. Interest rates have been unanimously left unchanged at 0.1%, with all nine members voting in favour, and the current quantitative easing package has remained at £200 billion. Two members however voted to increases the target of asset purchases.
The interest rates have been voted to remain steady after the emergency cuts in early March, following the coronavirus outbreak hitting UK shores and impacting UK business. Starting the year at 0.75%, the rate was reduced to 0.25% on the 11th March and then knocked down further eight days later to the current 0.1% level. Andrew Bailey will be speaking around the decision at 09:00 GMT. Traders globally will be looking to clues as to where the bank will be heading from here, with their efforts to stimulate Britain’s economy heading into a very decisive second half of the year.
Today also marks the Government’s imposed three-week review of lockdown measures, whereby the cabinet have to review the current restrictive measures. Despite this, it is widely expected the message to remain the same over the weekend, to stay home to help save lives. Boris Johnson is then due to address the nation on Sunday, where plans will be laid forth to allow restriction measures to be eased and reopen the economy for business. It is not as easy as allowing life to return to normal, however, traders will be keeping a keen eye on the plans, in what will be a global race to return to a level of normality as soon as possible.
Have a good weekend,
Author: Jack Nicholls, Relationship Manager
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