The Bank of England opted to expand its quantitative easing programme by 100 billion pounds to reinvigorate the ailing UK economy that was hit hard by the Covid-19 disease.
The BOE boosted its stimulus by 100 billion pounds to a total of $745 billion pounds, while decided to hold interest rates to 0.1 percent.
Andy Haldane was the only member dissenting from the majority, as he voted against widening the QE programme.
“The emerging evidence suggests that the fall in global and UK GDP in 2020 Q2 will be less severe than set out in the May Report. Although stronger than expected, it is difficult to make a clear inference from that about the recovery thereafter,” the BOE statement said.
“The committee expected the new asset purchase programme to be completed, and the total stock of purchases to reach £745bn, around the turn of the year; however, the Bank stood ready to increase the pace of purchases to ensure the effective transmission of monetary policy,” the statement revealed.
As of 11:30 GMT, the pound
continued to trade lower versus the US dollar at 1.2506, resuming its plunge for
a third straight session.