BoE: Consensus opinion is for a 25bp rate cut and a restart of QE - Westpac

Richard Franulovich, Research Analyst at Westpac, gauge Westpac’s North American clients view on the BoE’s further line of action.

Key Quotes

“No one realistically believes negative interest rates are an option for the BoE, especially given renewed stress on UK banks since the referendum. Consensus opinion is for a 25bp BoE rate cut and a restart of QE. The BoE meets 14 July but their 4 August meeting is considered a more likely date for action as it coincides with a BoE Inflation Report and provides more time to assess the fallout.”