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Rabobank View Following the BOE MPR

BOE
  • Rabobank notes that the inflation forecast "indicates that the MPC believes that the UK economy doesn't need much additional stimulus. Even though the tail risks of inflation have increased, we would disagree. We believe that the UK economy continues to face strong headwinds and see a further increase in the APF as inevitable."
  • On negative rates, Rabobank notes that the box in the MPR "mostly highlights the policy's costs and drawbacks, rather than its benefits. This suggests to us that this option is quite far down the MPC's list of preferred policy responses."
  • "We stick to our call for another GBP 100bn increase of the APF, setting our sights at the November meeting."

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