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UK: Bank of England cuts 150bp − more to come

Thu, Nov 6 2008, 13:55 GMT
by Allan von Mehren

Danske Bank A/S


Overview: Bank of England (BoE) took an unprecedented step today by cutting the Bank Rate 150bp. This took the Bank Rate from 4.5% to 3.0%. Consensus (and our forecast) was an easing of 50bp. Hence BoE's move was a major surprise and indicates that central banks are ready to take extraordinary measures to fight the global slow down. We now expect BoE to cut further by 50bp in the following 3 months, taking the Bank Rate to 1.5% in Q1.

0

0

UK: Bank of England cuts 150bp − more to come

Thu, Nov 6 2008, 13:55 GMT
by Allan von Mehren

Danske Bank A/S


Overview: Bank of England (BoE) took an unprecedented step today by cutting the Bank Rate 150bp. This took the Bank Rate from 4.5% to 3.0%. Consensus (and our forecast) was an easing of 50bp. Hence BoE's move was a major surprise and indicates that central banks are ready to take extraordinary measures to fight the global slow down. We now expect BoE to cut further by 50bp in the following 3 months, taking the Bank Rate to 1.5% in Q1.

Danske Bank  | Holmens Kanal 2-12, DK-1092 Copenhagen
http://www.danskebank.com/ | danskeresearch@danskebank.com

Legal disclaimer and risk disclosure

This publication has been prepared by Danske Bank for information purposes only. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. Whilst reasonable care has been taken to ensure that its contents are not untrue or misleading, no representation is made as to its accuracy or completeness and no liability is accepted for any loss arising from reliance on it. Danske Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. Danske Bank's research analysts are not permitted to invest in securities under coverage in their research sector. This publication is not intended for private customers in the UK or any person in the US. Danske Bank A/S is regulated by the FSA for the conduct of designated investment business in the UK and is a member of the London Stock Exchange. Copyright () Danske Bank A/S. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission.

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