Bank of England cuts bank rate threshold to reduce stock of purchased assets

|By:, SA News Editor

Bank of England's Monetary Policy Committee now says it won't reduce the stock of purchased assets--i.e., corporate bond and UK government bonds purchased--until the bank rate reaches about 1.5%, that's a lower threshold than its previous guidance of about 2%.

GBP/USD +0.23% to 1.3206.

Any reduction in the stock of purchased assets will be conducted at "a gradual and predictable pace."

If any potential changes in the bank rate aren't sufficient to achieve the inflation target, the reduction in the stock of assets could be amended or reversed.


Subscribe for full text news in your inbox