The Bank of England raised the economic growth from February’s projection of 5.0% to 7.25% this year, according to press release. The upgraded growth is the fastest since 1941 and follows the biggest plunge of 9.8% last year in more than 300 years.
BOE slowed its weekly bond-buys from 4.4 billion pounds to 3.4 billion pounds
The benchmark interest rate was maintained at 0.1% while the size of bond-buying programme was unaltered at 895 billion pounds
BOE projects the economy to hit pre-pandemic levels in the final quarter of this year, three months earlier than expected.
The bank downgraded 2022 growth from 7.25% to 5.75%
Unemployment is projected to increase slightly to 5.4% in Q3 2021 upon the expiry of Sunak’s job protection programme.
BOE lowered projections of long-term economic scarring from 1.75% to 1.25%
The central bank expects inflation to marginally surpass the 2% target this year, and fall below the level in 2-3 years
U.K stocks are currently gaining as the pound trades lower. FTSE 100 is up 0.52%, GBPUSD is down 0.08%
