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ING View Following the BOE MPR

BOE
  • "What stands out for us is that the 2021 CPI path is revised to 1.75% from just 0.5% seen in the May report. Inflation is seen roughly on target in two years' time, in theory then reducing the need for more monetary accommodation."
  • "In choosing to keep the Bank Rate and the APP target unchanged at this meeting, the BoE still has the door open for further policy action – probably at the November meeting when a new MPR is released and we will know more about the UK's future relationship with the EU"
  • On negative rates: "the MPR dedicates a box to the debate over their effectiveness but concludes that they are still under review. Indeed there is little incentive to rule out negative rates right now and we expect the market to stay very invested in this debate well into 2021."

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