Bank of England Kicks in Another £100 Billion to Bond Purchasing Program

Posted on 06/19/2020

On June 18, 2020, the Bank of England on kicked in another £100 billion to its quantitative easing (QE) program. These measures are targeted to help the English economy amid the negative economic impact from the Wuhan coronavirus pandemic. The total value so far of the Bank of England’s Asset Purchase Facility increased to £745 billion. Since the last count, the size of BOE’s asset purchasing program rests at £598 billion, which is getting close to the original target of £645 billion.

In addition, the Bank of England resisted taking its interest rates into negative territory, avoiding moves from some of its European counterparts. The central bank decided to keep its main lending rate at 0.1%. The interest rate has been lowered twice since the start of the pandemic from 0.75%.