MPC decision and August Inflation Report: Analysts´ reactions

"The stock of the APF programme was increased by £70bn from its present £375bn, with an unexpected move into corporate bonds. The expectation regarding QE was split but generally short of our call of a £100-150bn increase in asset purchases, although we had expected the Committee to focus purely on gilts. [...] The Bank of England released its new macro forecasts in the accompanied Inflation Report. [...] Overall, this results in a growth forecast above consensus but an inflation profile broadly in-line with consensus." - Fabrice Montagne and Andrzej Szczepaniak at Barclays Research

"There is of course much uncertainty over the likely effectiveness of the measures implemented today, as well as the over broader economic outlook. Nonetheless, alongside with the prospect of some fiscal stimulus, the MPC’s willingness to act aggressively and signal its preparedness to do more provides some support to our view that the ultimate economic impact of the UK’s vote to leave the EU will be rather smaller than some have feared." - Jonathan Loynes, chief European economist at Capital Economics

“The overriding concern is that the Bank can reduce the cost of credit and encourage more lending, but it can do little to boost the demand for lending and spur spending if business and households are worried about the outlook. The focus therefore now shifts to the Chancellor’s Autumn Statement, which will outline the extent to which fiscal policy will be used to provide additional support to the economy.” - Chris Williamson, chief economist at Markit

"Today's decision is a vote of no confidence in the UK economy and sets the scene for low interest rates for years to come. Savers who have been waiting for higher rates for so long must now consider whether to keep chasing the pot of gold at the end of the rainbow." - Laith Khalaf, Senior Analyst at Hargreaves Lansdown

“With interest rates once again at record lows, expansionary fiscal policy can do more to shore up business and consumer confidence, and put the UK on a stronger growth path for the future.” - Rain Newton-Smith, CBI chief economist

"For the United States, the weak pound adds to the drag on exports from the strong dollar but only modestly. US exports to the UK are only about 0.7% of US GDP. The downward pressure on British long-term interest rates from the Bank of England's easing measures today will reinforce the downward pressure on US long-term interest rates from global developments, including quantitative easing in the Eurozone and Japan, the global glut of crude oil, weak growth in China, and recessions in Brazil and other commodity-exporting emerging markets." - Bill Adams, International economist at PNC Financial Services