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FLASH BRIEFAugust BoE MPC Preview: Bye, bye QE?
By Jeremy Hawkins, Senior European EconomistAugust 2, 2021
The August MPC announcement promises to be one of the more important in a while. In line with many other central banks, the UK monetary authority has watched domestic inflation rise while maintaining that the acceleration would be just temporary and attributable to a range of one-off factors. However, Governor Andrew Bailey has acknowledged that recent increases have been surprisingly sharp and both Deputy Governor Dave Ramsden and fellow MPC member Michael Saunders have suggested that now is the time to reconsider the need for such a highly accommodative monetary stance. Quantitative tightening (QT), let alone an outright hike in Bank Rate, will not be on the table at this time but a possible early end to QE asset purchases will most definitely be hotly debated. Much will depend upon the updated economic forecasts contained in the new Monetary Policy...
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