Bank of England to Boost Bond-Buying Programme by £100 billion

Though Bank of England (BoE) said the hit on economy may not be as severe as initially feared, it does not mean the recovery will be quick. GBP/USD could continue its downtrend.

Bank of England Monetary Policy Committee unanimously voted to keep interest rates unchanged at the historic low of 0.1%.
In addition, BoE voted to pump an additional £100 billion into the UK economy. The extra monetary stimulus – known as quantitative easing (QE) – will raise the total size of the Bank's asset purchase programme to £745 billion.
The central bank sounded more upbeat about the economic outlook than in May. BoE are also moving to slow the pace of asset purchases.
UK’s economy shrank by 20.4% in April while labor data showed that UK payrolls fell by 600,000 between March and May.
Furthermore, inflation which is measured by consumer price index (CPI) fell to 0.5% in May from 0.8% in April which is below BoE’s target of 2%.
Even though the central banks’ MPs felt that the outlook isn’t as bad as they feared, the economic growth may remain tepid due to 2 main reasons extending beyond economics:
1) The fear of a 2nd wave of infections will hold back a complete recovery as social distancing will remain in place until a vaccine is found.
2) UK-EU trade negotiations on post-Brexit will continue to create uncertainties for businesses.
GBP/USD could move lower towards the 1.2200 price level as uncertainty continues to rise.