The Bank of England and the European Central Bank both decided to keep interest rates unchanged in their recent announcements. This decision comes in contrast to the actions taken by their counterparts in the United States.
The Bank of England, the central bank of the United Kingdom, held its key interest rate steady at 0.1%. The decision was made to support the country’s economic recovery from the impact of the COVID-19 pandemic. The Bank of England also maintained its bond-buying program at £895 billion ($1.24 trillion), aimed at stimulating economic growth.
Similarly, the European Central Bank (ECB) opted to keep its main refinancing rate at 0.0%. The ECB’s decision reflects its commitment to supporting the eurozone’s economic recovery. The central bank also confirmed that it will continue its bond-buying program, known as the Pandemic Emergency Purchase Programme (PEPP), at a total of €1.85 trillion ($2.2 trillion).
These decisions by the Bank of England and the European Central Bank signal their cautious approach to monetary policy amid ongoing uncertainties surrounding the global economy. While the US Federal Reserve has recently indicated a more hawkish stance, the Bank of England and the ECB have chosen to maintain their accommodative policies to support economic stability and growth.
Overall, the Bank of England and the European Central Bank’s decisions to keep rates on hold reflect their commitment to supporting their respective economies during these challenging times.
