BoE: Expect a 25bp rate cut in August - RBS

Research Team at RBS, now expect a -25bp rate cut in August (with risks of- 50bp) and a further -25bp cut in September (should the MPC cut -25bp in August).

Key Quotes

“Our conviction on Bank rate reaching 0% is reduced. There appears to be less clarity/confidence over the form of policy easing.

We anticipate a discussion of QE in August and pencil in £50bn of Gilt purchases to be announced in November. We expect the APF target to reach £500bn by end 2017 (+£125bn vs. the current £375bn).”