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FSR likely to include results of PRA survey on readiness for negative rates

BOE
  • The Financial Stability Report and FPC Minutes will be published on Thursday 10 December at 7:00GMT. As our policy team reported back in mid-October (see the full story here), the PRA's survey to banks on readiness for negative rates had a deadline of 12 November and this week's Financial Stability Report will be the natural stage to report the findings of the survey. If banks are not ready now we will likely find out how long the BOE now expects before negative rates could be effectively implemented. This will set the scene for next week's MPC meeting where the pace of QE and the technicalities of which gilts are eligible for purchase will be key (alongside any further clarity on negative rates).
  • This week will also see monthly GDP for October (although this is already fairly stale as it was before the November English lockdown). We will also see the last gilt supply from the DMO this calendar year.
For more on these events (including auction previews) and an update on Brexit progress see the MNI Gilt Week Ahead here.

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