Bank of England decision to maintain monetary easing policy tightening shift focus

The Bank of England, the central bank of the United Kingdom, decided to maintain large-scale monetary easing measures at a monetary policy meeting.

However, as prices continue to rise, several committee members have expressed their support for a rate hike, and the focus will be on how to shift to tightening monetary policy in the future.

The Bank of England has announced the results of its regular meeting held until 2 November.

According to this, it was decided to keep the policy interest rate at 0.1%, which is the lowest level ever, and to maintain the scale of quantitative easing to purchase government bonds and supply a large amount of funds to the market, and the current large-scale monetary policy. We will continue the mitigation measures.

However, at this meeting, two of the nine members expressed their support for the rate hike.

Three members also supported reducing the scale of quantitative easing.

Inflation is the background.

Prices continue to rise in the UK as economic activity resumes and energy prices rise, and the Bank of England expects inflation to exceed 4% by the end of the year and reach around 5% in April next year. increase.

Inflationary pressures around the world have led to central banks such as South Korea and New Zealand deciding to raise interest rates, and the Fed's Federal Reserve Board has decided to reduce the scale of quantitative easing in the United States, where the economy continues to recover. The focus will be on how the Bank of England will turn to tightening monetary policy in the future.