Whilst keeping policy on interest rates and quantitative easing on hold was a foregone conclusion heading into the meeting, we can see from the associated comments on the state of the UK economy and the likely path of policy in the future that we are going to be waiting a long time for the Bank of England to feel comfortable with bringing policy away from these ultra-accommodative levels.”
“It is widely believed that the next step for UK interest rates could see a push below 0% deemed necessary to support an economy that may be beset by a toxic cocktail of slowing consumer spending – given the termination of furlough support – alongside deeper falls in employment and the existential threat a no-deal Brexit represents.”
“Market pricing currently suggests that the base rate will fall below 0% by February 2021.”
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