Will the BOE and Government Do More For the British Economy?

Even as the US government gets ready to roll out massive fiscal stimulus measures to protect its economy, the Bank of England is expected to coordinate with the government to explore more opportunities to support the British economy. The BOE has already announced two emergency rate cuts and committed to additional bond purchases, but could announce more moves at its monetary policy meeting later today.

This will be the new governor Andrew Bailey’s first official meeting, but he has taken over at a highly tumultuous time and already been at the forefront of major steps. Although, he has assured markets that the BOE will not cut rates beyond the present level of 0.1% and take them into negative territory.

There is, however, an expectation that the central bank could increase the scope of its QE program to lend further support to the economy. Even though the BOE and the government have announced several stimulus measures, markets remain concerned about Britain’s large current account deficit and are unconvinced about how effective they will be in avoiding a recession.

In addition to the official BOE meeting, traders can also keep an eye out for finance minister Rishi Sunak’s speech. Sunak is expected to offer insight about how the government could provide support to the high number of self-employed people in Britain who have been directly or indirectly impacted by the coronavirus pandemic.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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