By Canadian Press

Bank of England holds off more stimulus, sees slow recovery

Aug 6, 2020 | 12:49 AM

LONDON — The Bank of England left its benchmark interest rate at a record low of 0.1% on Thursday as it expressed caution about how rapidly the United Kingdom’s economy will recover from the COVID-19 pandemic.

The bank also left its target for buying government and corporate bonds unchanged at 745 billion pounds ($980 billion).

The decision to hold off more stimulus was widely expected as the uncertainty over the pandemic could require more action later, economists say.

New figures due next week are expected to show the economy contracted almost 19% in the second quarter from the previous three-month period. That would be better than the central bank’s forecast in May for a 25% drop. Yet the recovery from that historic plunge is now also expected to be more gradual.

The Bank of England said the economy was not expected to return to pre-pandemic levels before the end of 2021, with outlook highly uncertain.

Meaningful Mementos

Remembering Someone You've Lost at Christmas

Dec 03, 2024

Seasonal Sorrow

How Do You Get Through The Holidays When You're Grieving?

Nov 01, 2024

Upcoming Events at Oliver's

Grief & Loss and Estate Planning Seminars

Oct 02, 2024

The minutes of the bank’s meeting showed that its policymakers are particularly concerned that the rise in unemployment could prove to be more persistent than expected. Unemployment, meanwhile, is expected to hit 7.5% this year.

They said they were worried that the economy could recover slowly as uncertainty over the pandemic leads some households and businesses to hold off spending.

The Associated Press