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The Bank of England (BoE) left interest rates unchanged while additional monetary support may boost government spending and support the pound, Yohay Elam, an analyst at FXStreet, reports.

Key quotes

“The situation is so worrying that two members voted to expand the bank’s QE program beyond the already broad level of £645 billion – increased by 45% in the March decision.” 

“The BoE foresees the economy shrinking by 14% in 2020. That is a dire scenario.”

“The combination of a gloomy picture and two members already voting to expand QE could prove positive for the pound, as markets will expect more monetary and fiscal support.”