The Bank of England expectedly kept the discount rate at 0.1%

The Bank of England (the British central bank) at a meeting on Thursday decided to maintain the base interest rate at 0.1%, it follows from the press release of the regulator.

He also confirmed the volume of further repurchase of assets from the market in the amount of 645 billion pounds.

These decisions fully coincided with the expectations of analysts surveyed by Reuters.

The rate has been at 0.1% since March 19. In March, the regulator held extraordinary meetings twice and lowered the rate – first by 50 basis points, to 0.25%, and then by 15 basis points, to 0.1%.

“The committee voted by a majority vote (seven to two) to ensure that the Bank of England continues the repurchase program of UK government bonds and investment-grade corporate bonds of the non-financial sector in the amount of £ 200 billion, funded by the issuance of central bank reserves so that the total volume of these purchases reaches 645 billion pounds. Two members of the committee at this meeting called for an increase in target volume of asset purchases by another 100 billion pounds, “the statement said.

It is added that the distribution of COVID-19 and its containment measures have a significant impact on the UK and many countries around the world. “Activity has fallen sharply since the beginning of the year, and unemployment has increased markedly,” the regulator writes.

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