Nomura view following the MPC meeting

Looks for GBP100bln QE in Nov

• Nomura notes that "the mere fact that the Bank is talking about negative rates so explicitly makes ANY easing in November more likely."
• Previously Nomura had expected further QE as a rise rather than its base case but now expects "the BoE announces £100bn more QE in November but does not go as far as to lower rates further. After all, as the Bank notes in its minutes today, the UK is in a far better position than its peers (particularly the euro area) when it comes to inflation and inflation expectations, so as drastic a response as the ECB has put in place when it comes to negative rates may not be needed."
• Nomura also notes that "with the MPC willing to step up the weekly pace of QE should COVID-19 make a big return the risks seem weighted to the Bank doing more, not less, asset purchases over the coming months. And today's minutes make negative Bank Rate an increased possibility."