Bank of England increases stimulus package for UK economy

The Bank of England has increased the stock of purchases of UK government bonds to help boost the UK economy following the coronavirus (COVID-19) pandemic.

On 18 June, the Bank of England increased the stock of purchases of UK government bonds by an additional £100 billion to help boost the UK economy following the coronavirus (COVID-19) pandemic.The £100 billion in additional quantitative easing funds takes the total to £745 billion.

The MPC also voted to cut the cost of borrowing to a record low of 0.1%. The Committee admitted it is 'hard to draw conclusions about the UK's recovery prospects' and stated that extra stimulus is needed to help boost the UK economy and push inflation.

The MPC said: 'The unprecedented situation means that the outlook for the UK and global economies is unusually uncertain.

'It will depend critically on the evolution of the pandemic, measures taken to protect public health, and how governments, households and businesses respond to these factors.

'Inflation is well below the 2% target and is expected to fall further below it in coming quarters, largely reflecting the weakness of demand.'

Internet links: Bank of England's Market Notice.

Address

Percy Westhead & Company, Hanover House, 30-32 Charlotte Street, Manchester M1 4FD

Contact us today!

0161 835 9866

© 2024 Percy Westhead & Company. All rights reserved.
Registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales.
Details about our audit registration can be viewed at www.auditregister.org.uk under reference C005779285

We use cookies on this website, you can find more information about cookies here.