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18 June 2020

Bank of England announces new £100bn stimulus package for the UK economy

Introduced by

Bank of England

Targeted at

UK economy

Timings

Published on 18 June 2020

Stated aims

To support the economy and push inflation up to the 2% target

Summary

The Bank of England announces a new £100bn stimulus package for the UK economy. The Monetary Policy Committee (MPC) voted for this stimulus package despite the fact that emerging evidence suggests the fall in UK GDP in the first half of the year will be less severe than set out in the May Monetary Policy Report. Despite the fall in GDP being less severe than expected, the MPC says 'it is difficult to make a clear inference from that about the recovery thereafter' and that 'there is a risk of higher and more persistent unemployment in the United Kingdom'. The extra stimulus is needed to support the economy and push inflation – currently at 0.5% – back to its 2% target.

Source(s)

Bank of England summary