Bank of England leaves rates at 0.1%, signals more stimulus

London: Bank of England policymakers signalled they may need to do more to combat the UK's economic slump as the coronavirus pandemic ravages the economy.

The central bank "stands ready to take further action as necessary," officials said in the summary of their meeting, after voting unanimously to keep their benchmark interest rate unchanged at a record-low 0.1 per cent. Still, two voted for an immediate 100 billion pound increase in bond-buying.

Like the Federal Reserve and the European Central Bank, the BOE has slashed interest rates and increased quantitative easing since March to keep the economy afloat as activity ground to a halt. Governor Andrew Bailey's first forecast round after a tumultuous first few months on the job suggest he isn't finished easing policy.

Officials had already increased the total stock of assets by 200 billion pounds to 645 billion pounds, and will likely need to announce more soon. At the current pace, officials noted in the summary of their meeting that they will hit their current goal by the beginning of July.