The UK central bank has decided on Thursday to maintain its monetary policy stance. The Bank of England maintained its key lending rate at 0.1%, having twice reduced rates starting from 0.75% since the outbreak of the Covid-19 outbreak. At the same time, the BoE also maintained its $ 1.2 trillion bond purchase target.
Earlier this past November, the outcome of the meeting saw the Monetary Policy Committee (MPC) choose to increase the number of bond purchases as the UK imposed a Covid-19 ban nationwide for a month to curb the rising pandemic.
This Thursday's report emphasizes that vaccine trials and vaccine distribution for the early stages are seen to lower the risk of economic projections. Data released last week showed the UK economic recovery was almost flat in October even before the implementation of stricter measures.
The UK has recorded the highest number of deaths in Europe due to Covid-19 infection with 65,618 deaths and more than 1.8 million cases were recorded on Thursday morning based on data released by Johns Hopkins University.
The MPC reports that economic prospects have yet to be determined. It depends on the transmission of Covid-19 and the steps taken to curb the transmission. In addition, a major factor is the development of trade negotiations between the European Union and the UK.
UK UK 12-month CPI (Consumer Price Index) inflation fell to 0.3% in November from a reading of 0.7% in October. The GBP still maintained its strength against the US dollar with a strengthening of 0.60%.
