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The Bank of England (BoE) left its policy settings unchanged at the May meeting, economists at Rabobank report.

Key quotes

“While the vote to keep Bank rate at 0.1% was unanimous, two MPC members (Haskel and Saunders) voted to increase the target for the stock of asset purchases by another GBP 100bn.”

“We continue to expect a GBP 100bn increase to be announced at the June meeting.”

“GDP would be close to 30% lower in 2020 Q2 than it was at the end of 2019. After this incredibly deep recession, the MPC expects a relatively quick bounce back in the latter part of 2020 and into 2021.”

“We suspect that the recovery will be much slower. While economies can be easily turned off by their governments, it will prove much harder to flick them back on.”