The Bank of England said on Thursday it would slow the pace of its bond-buying as it sharply increased its forecast for Britain's economic growth this year after its coronavirus slump.
The BoE kept its benchmark interest rate at an all-time low of 0.1% and the size of its bond-buying programme unchanged at 895 billion pounds ($1.24 trillion), as expected by economists polled by Reuters.
But the central bank said it would slow its bond-buying to 3.4 billion pounds a week between May and August, down from its current pace of 4.4 billion pounds a week.
Experts see another 3-4% downgrade if the virus is not contained imminently
"The expected completion point of the purchase programme remained unchanged. This operational decision should not be interpreted as a change in the stance of monetary policy," the BoE said.
The central bank raised its forecast for British economic growth in 2021 to 7.25% from its previous forecast of 5.0% made in February, but it lowered its projection for growth in 2022 to 5.75% from its previous estimate of 7.25%.
The BoE also said the economy was set to return to its pre-pandemic size in the last quarter of 2021, earlier than its February projection of the first quarter of 2022.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!