It looks like the Bank of England is planning to leave the rate unchanged at a minimal level on the basis of a two-day meeting today and may slightly reduce the purchase of assets before reports of inflation and economic growth in the next week.
The central bank cut interest rates to 0.5% in March and noted that they are unlikely to be lower. Therefore, all attention is now focused on the market that the Bank will announce whether the new plans to improve the provision of liquidity in the economy.
"It looks very likely that the Committee on monetary policy to reiterate its position and the target level for the purchases of assets will be 75 billion pounds," - said economist Philip Shaw Investec.
The Central Bank has implemented a two-thirds of its original program for the purchase of securities and corporate bonds, and probably will reach a total of 75 billion pounds by the end of this month. There is still margin to expand the scheme, if needed, but the monetary committee may refuse to accept this decision so soon.
In addition, the Monetary Committee wants to take a pause to assess the impact of measures already on the economy, especially given that data on money supply in the first month of the program showed her little impact. In addition, recent reports have shown signs of slowing down near the end of the economy. But some analysts say that stock market may react badly if the bank does not announce new steps.
The central bank cut interest rates to 0.5% in March and noted that they are unlikely to be lower. Therefore, all attention is now focused on the market that the Bank will announce whether the new plans to improve the provision of liquidity in the economy.
"It looks very likely that the Committee on monetary policy to reiterate its position and the target level for the purchases of assets will be 75 billion pounds," - said economist Philip Shaw Investec.
The Central Bank has implemented a two-thirds of its original program for the purchase of securities and corporate bonds, and probably will reach a total of 75 billion pounds by the end of this month. There is still margin to expand the scheme, if needed, but the monetary committee may refuse to accept this decision so soon.
In addition, the Monetary Committee wants to take a pause to assess the impact of measures already on the economy, especially given that data on money supply in the first month of the program showed her little impact. In addition, recent reports have shown signs of slowing down near the end of the economy. But some analysts say that stock market may react badly if the bank does not announce new steps.
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