UK bank rate will be cut by 20bp to about 5bp in November - SocGen

Research Team at Societe Generale, suggests that while the impact of the Brexit uncertainty is yet to be felt in the UK economy, their economists warn that further monetary easing will be needed.

Key Quotes

“The minutes of the August MPC meeting stated that the effective lower bound was “close to, but a little above, zero”. Our economists take this to mean that Bank Rate will be cut by 20bp to about 5bp, most probably at the November Inflation Report meeting.

SG economists also expect the purchase programme to be doubled to £120bn for gilts, increased by £5bn to £15bn for corporate bonds and the Term Funding Scheme to be expanded by £80bn, taking the total stock of central bank reserves to £690bn.”