Goldman Sachs view following the MPC meeting

Continue to expect GBP100bln QE in Nov

• Goldman Sachs continues to expect another GBP100bln QE in November "given the relative weight the MPC is likely to place on labour market developments as a gauge of medium-term inflationary pressure".
• "In a tail scenario involving blanket Covid containment measures and a disorderly rupture in Brexit negotiations, we expect the BoE to engage in additional asset purchases beyond November, and to cut interest rates gingerly through zero over the course of 2021. Alongside rate cuts, in that scenario, we think the BoE would replenish its Term Funding Scheme (at Bank Rate rather than below Bank Rate) and establish a tiered system of reserve remuneration (to mitigate the side-effects of negative rates)."