Oliver Mangan: Why the return of the Roaring Twenties is unlikely

Given the growing optimism about a strong economic rebound, minds are turning to when the Bank of England might tighten policy

The general tone of the Bank of England’s monetary policy meeting statement and minutes was one of growing optimism.

There had been some speculation in the lead-up to last week’s monetary policy meeting in the UK that the Bank of England might announce a tapering of its quantitative easing (QE) bond purchase programme, given the improving prospects for the economy. 

While the BoE did indeed announce a slowing in the pace of asset purchases, it emphasised that “this operational decision should not be interpreted as a change in the stance of monetary policy”.