UK: More measures will be needed – ABN Amro
|UK monetary and fiscal authorities announced coordinated measures to cushion the economic blow from the coronavirus outbreak but economists at ABN Amro judge that more measures will likely be needed to combat the coronavirus fallout, both on the monetary and the fiscal front.
Key quotes
“We expect the Bank of England to restart QE as its next step. Previously, we had expected this to happen in April, but with the 50bp cut coming earlier, we now expect this to happen at the 26 March scheduled MPC meeting.”
“On the fiscal front, we judge that the government’s 2020 GDP growth projections are overly optimistic, at 1.1% (ABN AMRO: 0.8%, with downside risks), and that as the economic fallout intensifies, additional measures will become necessary.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.