"The PRA considers this lack of capabilities to be a market failure, posing risks to the PRA's safety and soundness objective, and has therefore decided to clarify its expectations in this area," says BoE
The BoE's nine monetary policymakers voted 8-1 to keep its government bond-buying programme at 875 billion pounds ($1.22 trillion). They voted 9-0 in favour of keeping its corporate bond programme at 20 billion pounds.
Inflation pressures faced by British firms hit record levels this month, and growth in the private sector cooled only slightly from an all-time high in May when coronavirus restrictions were lifted.
*Vlieghe reiterated BoE forecasts that inflation was likely to exceed its 2% target later this year, due to temporary bottlenecks and base effects, but stressed the BoE would look to the medium term when setting interest rates.
"Policy metrics will remain on hold with the need for on-going support maintained," said Stuart Cole, head macro economist at Equiti Capital.
The SNP has pledged to call for a second Scottish independence referendum, although permission to do so will need to be granted by the UK government in London.
Its copper production stood at 301,200 tonnes in the first quarter, but zinc fell 13,000 tonnes year-on-year to 282,600 tonnes and nickel was down 11% at 25,200 tonnes.
"One lesson that we learned from the financial crisis is that withdrawing policy support too early can be very costly," Tenreyro said in an online discussion hosted by Swedish think tank SNS.
"Withdrawing it too early ... can lead to scarring effects on the labour market that would be very costly and slow down growth going forward," she added.
