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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
BOE
MNI View
- To us there were surprises on the clarity of guidance on negative rates, forecasts that remained too optimistic (but are conditioned on negative rates) and added forward guidance against pricing in a more optimistic outcome.
- The Bank is forecasting a much more optimistic recovery if negative rates are priced into the outlook. But then stating that it doesn't expect to use negative rates in the near-term. This makes the Bank's forecasts fairly irrelevant in our view.
- Even without the bump to growth from negative rates, the forecasts remain too optimistic and we think that there will be more easing from the Bank to come.
- We think this could come in the form of a smaller top-up in November to tide over from the end of this year when QE is scheduled to end until the February Monetary Policy Report when the outlook for the labour market will be clearer.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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