Home >News >World >Bank of England leaves unchanged its pace of stimulus for UK

The Bank of England maintained the pace of its stimulus on the UK economy, reiterating that it doesn’t intend to tighten monetary policy until there’s clear evidence of a recovery.

The central bank made no change to its target for asset purchases of 895 billion pounds ($1.2 trillion) and left the benchmark lending rate at record low of 0.1%. It will continue with pumping about 4.4 billion-pounds a week into markets by buying bonds.

Britain’s economic outlook is starting to brighten with a rapid coronavirus vaccination campaign and a government decision to extend furlough payments to those put out of work by Covid-19 lockdowns. Governor Andrew Bailey is balancing that against the near-certainty of a sharp contraction in the first quarter and forecasts that unemployment will peak later in the year.

“There is judged to be a material degree of spare capacity at present," the Bank of England said in a statement on Thursday. “The outlook for the economy, and particularly the relative movement in demand and supply during the recovery from the pandemic, remains unusually uncertain."

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