Bank of England Reports Published in May 2020

Monetary Policy Report and Interim Financial Stability Report – May 2020 – Read the report

The Bank has published its quarterly Monetary Policy Report alongside an interim Financial Stability Report. Together, they provide a scenario for the path of the UK economy in the light of Covid-19 and assess the financial system’s resilience to that scenario.

Bank Rate maintained at 0.1% – May 2020 – Read the report

The MPC voted unanimously to maintain Bank Rate at 0.1%. The Committee voted by a majority of 7-2 for the Bank of England to continue with the programme of £200 billion of UK government bond and sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, to take the total stock of these purchases to £645 billion.

The global effects of global risk and uncertainty – Read the report

This paper published by the Bank of England analyses the effects of a shock to global financial uncertainty and risk aversion on real economic activity.

Coronavirus: Renters Struggle Most with Pandemic Costs, Report Says

From: The BBC

Private renters are more likely to be struggling with payments than those who own their homes, new research by the Resolution Foundation suggests.

They conclude that one in eight private renters have fallen behind with housing costs since the coronavirus crisis began, compared to one in 12 mortgaged homeowners.

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Trader Focus Turns to US Response to China

From: Daily Forex

During Asian trade on Friday, the US Dollar was penned within a narrow trading band as investors focus on the US President’s response to China’s recently passed national security law which will be in place for Hong Kong.

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Renewed Worries of Negative Rates Hit Pound

From: Daily Forex

The Pound Sterling came under pressure against the US Dollar on revived strength for the greenback and a market focus back toward the discussion of a negative rate environment in Britain.

On Tuesday, the Chief Economist for the Bank of England tried to dismiss the Bank of England’s review of the matter.

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Australian Dollar Surges as Investors Focus on Recovery from Pandemic

From: Reuters

Riskier currencies rose against the dollar on Monday as investors looked to positive signs from China’s post-coronavirus economic recovery and wagered on an easing in Sino-U.S. tensions.

The trade-sensitive Australian dollar AUD=D3 surged 1% to a three-month high of $0.6742 to lead broader gains that put the dollar close to an 11-week low against a basket of currencies.

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Dollar Weak vs. Euro as Month-end Flows Weigh

From: Reuters

The dollar edged lower against the euro on Friday, hurt by month-end flows and as the common currency continued to enjoy a boost from the European Union’s recently announced plan to prop up the bloc’s coronavirus-hit economies with a 750 billion-euro (673 billion pounds) recovery fund.

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FX Rates in May