Key points of the Bank of England’s decision

Keep interest rates unchanged: The Bank of England announced the interest rate resolution, and the committee unanimously agreed to maintain interest rates and the total size of asset purchases at 745 billion pounds unchanged, and strive to ensure the stability of British monetary policy and financial markets; forecast economic recovery to be 5 The monthly report assumes earlier and faster, and is considering whether the ELB of bank interest rates can be lower than zero, that is, whether negative policy interest rates can provide economic stimulus;

GDP growth is expected to decline: GDP growth prospects still tend to decline. It is expected that the GDP growth rate in the second quarter of 2020 in the United Kingdom will be more than 20% lower than that in the fourth quarter of last year. The GDP growth rate in 2021 is expected to fall from 15% in May to 9%, and the unemployment rate in 2020 will rise to about 7.5%;

It will take two years for the CPI to return to 2%: The new crown pneumonia epidemic is reducing employment and income in the UK. It also puts huge pressure on the cash flow of British companies and threatens the livelihoods of many people; it will take two years for the CPI to return to 2% , UK CPI is expected to be 0.25% in 2020, 0.6% in May, and CPI in the third quarter of 2022 is predicted to be 2.0%; but for a period of time, employment and income will be lower than before the epidemic;

Bond purchase speed: The Bank of England will reduce the rate of bond purchases to GBP 4.4 billion per week from August 11, and is ready to accelerate the pace of bond purchases if necessary. It will conduct bond operations three times a week, up from six previously; since January, the central bank Has supported the UK economy through interest rate cuts and quantitative easing measures totaling 300 billion pounds.