Daily Management Review

The Bank of England will expand bond buyback programme to $1.2T


On Thursday, the Bank of England announced the expansion of its £150 billion ($195 billion) government bond buyback programme, bringing the total to £895 billion ($1.17 trillion).

Matt Buck
Matt Buck
Analysts expected the government bond buyback programme to expand by £100 billion. With this cash injection, the Bank is trying to stimulate the British economy in the face of a new lockdown and the risk of failure of negotiations on the new terms of trade between the UK and the EU.

At the same time, the Bank of England has announced that it will maintain its interest rate at 0.1%. In addition, the institution presented an updated GDP forecast for the UK: it now expects GDP to grow by only 7.25% in 2021 (previously forecast 9% growth), but by 6.25% in 2022 (against 3.5% previously expected). 

In line with the new forecast, the Bank of England expects unemployment to peak in the second quarter of next year at 7.75%.

source: ft.com