# Bank of England to buy £150B more bonds as new lockdown starts – POLITICO

> The Bank of England held its policy rate at 0.1% and raised its bond-purchase target by £150 billion to £895 billion to support the economy through a second lockdown. It also forecast a 2% contraction in the fourth quarter and an 11% smaller economy at the end of 2020 than at the end of 2019.

- Date: 2020-11-05 · published 2020-11-05T12:00:00.000Z
- Category: macro · region UK · magnitude medium
- Page: https://feedsoft.ai/events/50418-bank-of-england-to-buy-150b-more-bonds-as-new-lockdown-starts-politico
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md)

## Why it matters

A larger-than-expected quantitative easing package weakened expectations for sterling relative to the dollar and euro, and it signals a weaker UK economy. For feed buyers, the effect runs through currency moves rather than direct demand for feed.

## Read by commodity

- GBPUSD: bullish ▲

## Sources

- politico.eu: https://www.politico.eu/article/bank-of-england-to-buy-150b-more-bonds-as-new-lockdown-starts/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.