(C) Bloomberg. Empty benches sit outside the Bank of England (BOE) in the City of London, U.K., on Wednesday, May 6, 2020. Bank of England policy makers will meet this week knowing that they’ll probably have to do more to combat the U.K.’s economic slump, if not now then soon. Photographer: Simon Dawson/Bloomberg
(Bloomberg) — The Bank of England intensified its response to the fallout from the coronavirus by expanding its bond-buying program, taking another step in the uphill battle to lift the economy out of the worst recession in centuries.
Policy makers led by Governor Andrew Bailey voted 8-1 to boost purchases by 100 billion pounds ($125 billion) while keeping the benchmark interest rate kept on hold at a record-low 0.1%.
The decision will keep the lid on government borrowing costs even as the Treasury ramps up bond sales to finance a massive support package to save jobs and keep businesses afloat.
(C)2020 Bloomberg L.P.
Bank of England Steps Up Virus Fight With Bond-Buying Boost
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