UK MPC Decision-Making

  1. The international economy
  2. Financial markets
  3. Credit conditions and monetary developments
  4. Demand and output
  5. Supply, costs and prices
Tighter mortgage availability is anticipated over the forecast period.
  1. In the near term, activity is dampened by Covid developments and temporarily lower trade as businesses adjust to new arrangements with the EU.
  2. Over time, uncertainty dissipates gradually and spending recovers.
  3. There is some long-lasting scarring of the economy’s supply capacity.
  4. Spare capacity in the economy is currently weighing on inflation, but it is eroded over time and inflation returns to the target.
Source: ONS, Households’ saving ratio 2019–2020
Source: Bank of England, Reported changes in spending due to COVID-19, by household income
Source: ONS- Living Costs and Food Survey, Proportion of total spending by category and income decile, UK, FYE 2019
  1. Maintain bank rate at 0.1%
  2. Maintain ongoing £20bn of corporate bond purchases
  3. Maintain ongoing of £100bn gilt purchases and increase by a further £150bn




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LSE SU Central Banking Society

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