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Sell-Side View: No Dovish Shift; 1w Deposit Rate May See Normalistaion  1Q21

NBH
Sell-Side View
  • Citi: No dovish shift from the NBH, despite soft CPI surprises. Policy focus to remain on extended asset purchase programs.
  • scope for a 15bp cut in the 1-week deposit rate in Q1 2021, closing the gap to the 0.60% policy rate.
  • GS: NBH seen on hold at 0.6%, may consider expanding its lending schemes or asset purchase programmes.
  • Benign inflation projections may see 1w deposit rate cut 15bp in 1Q21.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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