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Rabobank view following the MPC meeting

BOE

Continues to look for GBP100bln more QE "likely" in November

  • Rabobank argues that "while the BoE are preparing themselves for the possibility of going negative, today's meeting report did not contain strong hints that a negative interest rate is on the cards already."
  • On NIRP, Rabobank continues "to stick to our view that the BoE will not implement negative rates given our expectations that a Brexit agreement will be sealed at the end of this year. Having said that, we do recognize that the chances of a hard-Brexit have increased further"
  • Continue to expect GBP100bln QE with an announcement "likely" in November.

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