Economics

BOE’s Bailey Says Don’t Be Deceived by U.K.’s Bounceback So Far

Officials ready to ‘lean in and support’ economy, Bailey says
MPC votes unanimously to hold key rate, QE target unchanged

Watch: The Bank of England left interest rates and asset purchases unchanged and said it doesn’t plan to tighten policy until it’s more certain about the outlook for inflation. (Source: Bloomberg)

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By Lucy Meakin, David Goodman, and Francine Lacqua

August 6, 2020 at 6:14 AM UTC

Updated on

August 6, 2020 at 12:00 PM UTC

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Bank of England Governor Andrew Bailey said the central bank is ready to support the U.K. economy through its long road to recovery as officials sought to reassure investors that they won’t tighten monetary policy anytime soon.

The pound gained on Thursday after the central bank released more robust projections for the economy and policy makers also hinted that they’re not ready to follow others in taking borrowing costs below zero. Still, Bailey stressed the risks to the forecasts were tilted to the downside, and said the BOE is ready to do more if needed.