“The uncertainty is expected to continue to reduce investment other things equal, weighing on the capital stock and productivity growth,” Bank of England (BOE) Governor Andrew Bailey said at a webinar hosted by the Resolution Foundation on Monday.
Additional takeaways
“Stronger growth in potential supply supported by stronger investment and productivity growth will make the COVID recovery easier.”
“Monetary policy has a role to play in ensuring there is sufficient growth in demand to match any increase in potential supply growth.”
“Last week’s budget outlined a range of measures to support economic growth through significant investment in infrastructure, skills and innovation.”
“The rate of new COVID infections is declining, vaccine programme is a huge achievement, there is light at the end of the tunnel.”
“Expected recovery is supported by BoE rates and QE, amply justifies our current stance on monetary policy.”
“We will continue to execute the announced programme of asset purchases which we expect to be completed by around the end of 2021.”
“Encouraging that measures of inflation expectations have remained relatively stable in the UK.”
Market reaction
The British pound showed no immediate reaction to these comments and the GBP/USD pair was last seen losing 0.08% on the day at 1.3830.
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