The Bank of England voted unanimously to keep its benchmark interest rate on hold at a record low of 0.1 percent and to leave its bond-buying programme unchanged during its March 2021 meeting, saying the UK GDP was projected to recover strongly over 2021 towards pre-Covid levels and CPI inflation was expected to return towards the 2 percent target in the spring.
Policymakers continued to envisage that the pace of government bond purchases could remain at around its current level, with flexibility to slow it later; but signaled that the central bank stood ready to increase the pace to ensure the effective transmission of monetary policy.
The central bank also said it does not intend to tighten monetary policy at least until there is clear evidence that significant progress is being made in eliminating spare capacity and achieving the 2 percent inflation target sustainably.
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