BoE expected to ease this week – TDS

The Rates, FX and Commodities Research team at TD Securities sees the BoE cutting its benchmark rate by 25 bp at this week’s meeting.

Key Quotes

“The Brexit vote has meant that developments in the UK have a much greater than usual impact on global markets in general and EM in particular”.

“On Thursday the Bank of England's MPC meets for the first time since the Leave vote”.

“While uncertainty remains elevated on the precise timing and instruments they will use, one thing is clear: monetary policy must be eased”.

“We think odds favour an initial 25bps cut at this week's meeting, with signals for further (and possibly more creative) policy in August and beyond, which could come across as dovish”.