Bank of England continues monetary stimulus

Note: This section contains information in English only.
Source: Dukascopy Bank SA
On November 4, the Bank of England announced its future monetary policy. The Official Bank Rate, Bank Rate Votes, Asset Purchase Facility and Asset Purchase Facility votes were revealed. Namely, the bank published both the policy decision and how the members of the monetary policy committee voted.

In general, the bank decided to keep monetary policy unchanged. However, instead of all of the nine committee members voting to keep the policy as is, two members voted for a rate hike. Policymakers Ramsden and Saunders are reported to have voted for a rate hike to 0.25% from 0.10%.

Quoting the statement: "At its meeting ending on 2 November 2021, the Committee judged that the existing stance of monetary policy remained appropriate. The MPC voted by a majority of 7-2 to maintain Bank Rate at 0.1%.

The Committee voted unanimously for the Bank of England to maintain the stock of sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, at £20 billion.

The Committee voted by a majority of 6-3 for the Bank of England to continue with its existing programme of UK government bond purchases, financed by the issuance of central bank reserves, maintaining the target for the stock of these government bond purchases at £875 billion and so the total target stock of asset purchases at £895 billion."

Released Document

Monetary Policy Summary, November 2021

On the announcement, at 12:00 GMT, the GBP/USD started a decline. During the fifteen minutes following the release the rate had declined by 86 base points or 0.63%.

On a larger scale, the monetary policy decision boosted the decline of the rate, which had been going on since October 21.

Initial Reaction

Larger scale situation

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