Bank of England Keeps Benchmark Rate Steady, But Debate Over Tightening Policy Heats Up
By Jason Douglas
LONDON--The Bank of England kept its benchmark rate steady, but
a debate over tightening policy to restrain inflation is heating
The BOE said in a statement Thursday that its nine-member
Monetary Policy Committee voted unanimously to keep the central
bank's policy rate at a record low of 0.1%.
But two officials on the panel pushed for the BOE's asset
purchase program to be scaled back. Michael Saunders and David
Ramsden called for the BOE to reduce the target for its government
bond purchases to 840 billion pounds ($1.144 trillion) from GBP875
billion currently, a move that would bring it to an end before the
end of 2021.
These two members argued that mounting inflationary pressures
mean the bank is in danger of persistently overshooting its 2%
annual inflation goal without some withdrawal of stimulus. Mr.
Saunders has pushed for a similar move previously but this is the
first time Mr. Ramsden joined him.
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(END) Dow Jones Newswires
September 23, 2021 07:37 ET (11:37 GMT)
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