(Slightly) more policy certainty

So to sum up the BOE:

• GBP150bln of QE rather than the GBP100bln expected by consensus. However, purchases will continue until end 2021, longer than expected to be announced at this meeting (but it was very likely QE would have been extended before it finished anyway). The pace of QE is left unchanged - which is the key here. That stops the higher number being a very dovish development. Also, the Bank left in the line in about being able to increase the pace of QE if markets become dysfunctional but also noted that the pace could be lowered as the operation was flexible. MNI calculations estimate at the current pace the QE envelope would be exhausted by the first week of November 2021, so a slowing of the pace, probably in mid-year seems likely.
• Growth forecasts revised lower (expected), inflation forecast still at target in 2 and 3 years time (expected). The growth forecast no longer has a V trajectory, technically more of a W but the second dip of the W is much, much smaller than the first. Growth looks roughly back to Q4 2019 level by Q4 2021 (that still probably faster than the market expects).
• So QE to last longer but pace is as expected (so only marginally dovish) and growth forecasts still a bit better than the market (largely expected).