PwC comments on the Bank of England MPC meeting

Alex Tuckett, senior economist at PwC, comments on today's MPC meeting:

"The Bank of England (BoE) today voted 8-1 to undertake a further £100bn of QE purchases, buying government bonds with newly created money to support financial markets and the UK economy. This was widely expected by market commentators, with the previous program of QE scheduled to be completed by the end of June.

"Although less bad than the BoE's scenario, the GDP data for April released last week has underlined the challenges facing the UK economy, as has the labour market data released earlier this week. And with inflation falling sharply, the MPC will remain focused over the coming months on supporting the economic recovery as Covid-19 restrictions are gradually lifted. The BoE is currently conducting a review into the pros and cons of negative rates as a policy tool, and should the economy take another turn for the worse, the MPC will undoubtedly look at their options for providing fresh stimulus."

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