Many expect the Bank of England to enact more accommodative measures to help bolster the economy. In the post-Brexit environment, Martin Weale, one of the Bank of England’s long-time hawks, is even beginning to turn dovish on their policy outlook.
SEE MORE: Brexit Continues to Drag on Pound ETF, Sends GBP to Three-Decade Low
“UK interest rates are now at a record low 0.25%. Balancing the anticipation for lower growth with higher inflation will be a tricky path for the Bank of England in the next two years ahead as the UK dives into the uncharted waters of leaving the European Union,” adds Options Express.
Following Brexit, the Bank of England added a new term-funding program for banks, providing lenders ultra-cheap, four-year loans to help finance lending for households and businesses as an additional step to stimulate the economy.
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