Bank of England Monetary Policy Committee (MPC) due today at 0700.
Some excerpts from Nomura on what to expect:
- an extension of the Bank of England’s QE programme by £100bn
- we see such an expansion as representing a good balance between too little (£50bn) and too much (200bn)
- While negative rates are being considered for inclusion in the Bank’s toolkit, they are unlikely to be available for use until early next year – and even then we don’t expect this policy tool to be deployed.
- We expect the Bank to repeat its ECB-style guidance that the MPC “does not intend to tighten monetary policy until there is clear evidence that significant progress is being made in eliminating spare capacity and achieving the 2% inflation target sustainably”.
- Its forecasts are likely to remain conditioned on “an immediate, orderly move to a comprehensive free trade agreement with the European Union on 1 January 2021”
