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Sept. 23, 2021, 7:10 a.m. EDT

Bank of England maintains bond purchase program in 7-2 vote

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By Steve Goldstein


The Bank of England on Thursday unanimously decided to keep interest rates at 0.1%, and its two newest members were on the side of maintaining its bond purchase program in a 7-2 vote. Dave Ramsden and Michael Saunders voted to reduce the government bond purchase target to £840 billion from £875 billion, with Ramsden switching sides from his August decision. The outlook for the labor market, and hence underlying inflationary pressures, was particularly uncertain, and that some of this uncertainty should be resolved over coming months, the majority of Bank of England members said, according to the minutes. Monetary policy would at some point need to start to unwind some of its post-pandemic stimulus, the majority said, while Ramsden and Saunders argued asset purchases when CPI inflation was above 3% and the output gap was closed might cause medium-term inflation expectations to drift up further. The pound /zigman2/quotes/210561263/realtime/sampled GBPUSD +0.0072% was trading at $1.3693 shortly after the decision, and the 2-year gilt inched up to 0.31%.

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Oct. 22, 2021 12:37a

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