BoE: Expect a 15bp rate cut in November and GBP30bn of QE in February 2017 – HSBC

Research Team at HSBC, now expects a 15bp rate cut in BoE’s November meet, taking Bank Rate to 10bps and also forecast another GBP30bn of gilt purchases to be announced in February, when the current six-month buying programme ends.

Key Quotes

“The bigger call is on QE. A majority of the MPC seems unconcerned about increasing the size of the BoE's balance sheet and holding riskier assets. And they also seem inclined to do more to stabilise output than meet the inflation target. This suggests more QE could well be on the horizon. Given that we forecast the UK economy to stagnate, we therefore assume another GBP30bn of gilt purchases will be announced in February, when the current six-month buying programme is due to end.”