UK Base Interest Rate Held at 0.1%... "Bond Purchase Target Reduced" (Update)

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Hyun-woo] The Bank of England, the central bank of the United Kingdom, announced that it will keep the base interest rate unchanged at 0.1%. Although concerns about inflation remain high, worries about the economic recovery amid the ongoing impact of COVID-19 appear to have had a greater influence.

According to foreign media including the BBC on the 3rd (local time), the Bank of England announced that following the Monetary Policy Committee meeting, the base interest rate will be maintained at 0.1% with 7 votes in favor and 2 against. However, the existing bond purchase program will be reduced by ?20 billion, from ?875 billion (approximately 1,414 trillion KRW) to ?855 billion.

The Bank of England stated that inflation is expected to reach up to 5% by April next year, but it forecasts that supply issues driving current inflation, global demand problems, and short-term energy price increases will disappear over time.

This content was produced with the assistance of AI translation services.