FXstreet.com (Barcelona) - BoE’s policy meeting minutes pointed to the 7-2 vote in favor of the extension of the asset purchase programme by £50B, with discussion of the amount of £75B, and the unanimous vote to keep the 0.5% rate unchanged, while the other easing measures (FLS, ECTR and prospective relaxation of regulatory liquidity requirements) take place.
“With the BoE expressing some concern about higher rates charged on mortgages and loans to smaller companies, it does seem that if those rates do not come down over the next few months, once the new credit easing measures have had some time to work, the risks of a cut to the Bank Rate will increase”, wrote senior global strategist Jacqui Douglas. “However, that would not likely be under serious consideration until Q4-Q1”.
TD Securities analysts don’t expect the BoE to cut rates, but the Central Bank seems to be considering the possibility. Meanwhile, they wait and see the effect of the ECB’s zero deposit rate.
“With the BoE expressing some concern about higher rates charged on mortgages and loans to smaller companies, it does seem that if those rates do not come down over the next few months, once the new credit easing measures have had some time to work, the risks of a cut to the Bank Rate will increase”, wrote senior global strategist Jacqui Douglas. “However, that would not likely be under serious consideration until Q4-Q1”.
TD Securities analysts don’t expect the BoE to cut rates, but the Central Bank seems to be considering the possibility. Meanwhile, they wait and see the effect of the ECB’s zero deposit rate.
