BoE signals looming tightening but keeps rates and QE unchanged – CityAM : CityAM

The Bank of England today signalled it could rein in the wave of stimulus it unleashed in response to the Covid-19 crisis soon.

The Old Lady’s committee of rate setters acknowledged the UK economy’s sharp rebound from the pandemic had strengthened the case for “some modest tightening of monetary policy.”

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Further evidence showing the economy is on a positive trajectory had emerged since the monetary policy committee’s (MPC) last meeting, it said.

The Bank of England’s MPC voted unanimously to hold rates at a record low 0.1 per cent.

However, there were tremors of dissent toward the Bank’s bond buying programme, with MPC members Michael Saunders and Dave Ramsden voting against finishing the final leg of the Bank’s purchases of government bonds.

The committee voted unanimously to finish its corporate bond purchases.

More to follow.