The UK central bank maintains its current interest rate level after several interest rate cuts against the corona crisis earlier this year. Interest rates remain at the historically low level of 0.1 percent.
On average, economists had already expected that interest rates would not change. Furthermore, the size of the Bank of England (BoE) buy-back program remains unchanged at £ 645 billion. The decision to leave interest rates unchanged was unanimously taken by BoE policy makers. However, two policymakers voted to increase the buy-back program.
The BoE further reported that the corona crisis may shrink the British economy by as much as 14 percent this year. A rebound of 15 percent is predicted for 2021. The central bank indicated that it would be ready with more stimulus measures to tackle the crisis.