This BOE Announcement Gives New Hope To Investors! - Kakiforex.com - Financial Market Media No. 1 in the World This BOE Announcement Gives New Hope To Investors! This BOE Announcement Gives New Hope To Investors!
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May 7, 2021

This BOE Announcement Gives New Hope To Investors!

 Bank of England to slow the pace of a trillion -dollar stimulus program and predict a faster recovery for Britain. However, the bank stressed that it will not tighten monetary policy in the near future.


Governor Andrew Bailey said it was good news and showed indications that the economy was poised to grow faster than previously forecast. Even so he went down to stress that there is still an economic gap of impact on the pre-pandemic economy.


The central bank, on the other hand, said it had reduced the amount of bonds it bought each week to 3.4 billion pounds, down from the current rate of 4.4 billion pounds a week. The BoE said this decision should not be construed as a change in the attitude of monetary policy.


So far, most central banks in developed countries around the world have stressed that they do not want to rush to lower the amount of stimulus they announce to stimulate the economy.


But the Bank of Canada said last month it was likely to start raising rates by the end of 2022 and reduce bond purchases.



The sterling is still below its lows at the exchange rate of 1.3899 against the US dollar.


Dean Turner, who is an economist at UBS Global Wealth Management, said the announcement and he could push sterling to make further profits on this.


The central bank kept its benchmark interest rate at an all -time low of 0.1% and the total volume of its bond -buying program was unchanged at 895 billion pounds ($ 1.24 trillion) in line with economists ’forecasts.


Finally, the BoE decided to raise its forecast for Britain’s economic growth in 2021 to 7.25% from a previous estimate of 5.0% made in February.


Consumer price inflation was slightly below the 2% target over the next two years, based on expectations in financial markets which saw bank rates at 0.3% at the time and 0.6% in the second quarter of 2024.