The Bank of England (BoE) has expanded its support for the virus crisis to the economy by 150 billion pounds, while warning of a deeper blow to a return to tight COVID-19 restrictions.
A recent meeting of the Monetary Policy Committee (MPC) kept interest rates at a record low of 0.1% – defying speculation among some commentators that it may choose negative interest rates for the first time in its history to encourage bank lending and spending.
It also entered England second Full shutdown In the year, the bank said its decision to launch more quantitative easing now reflects efforts to keep the wheels spinning as large parts of the economy come to a standstill.
The bank said the decision also reflected an “initial period of adjustment” expected after the Brexit transition period ended, saying its effect was based on the assumption of a trade deal that had been agreed upon.
The Bank of England’s quantitative easing program, or asset purchase program, is now £ 875 billion.
It allows the bank to free up money in the economy to support daily activities.
The bank, in its update on Wednesday, said the additional £ 150 billion in aid reflected its latest forecast that the economy will remain below its pre-pandemic peak during the first quarter of 2022.
It had previously expected the recovery to be completed next year.
However, it did not reach the point of predicting a so-called double recession.
