So BOE in essence left QE on hold (with 2.......>

BOE: So BOE in essence left QE on hold (with 2 members voting for an increase).

But reading between the lines the reason QE was left on hold was because we

aren't close to exhausting the GBP200bln already announced and there is still

great uncertainty around the recovery. The scenario used expects a decent

bounceback - in the BOE's words "GDP picks up relatively rapidly in 2020 H2 in

the scenario, although it takes some time to recover towards its previous path."

But there are warnings - particularly that voluntary social distancing may be

more persistent or companies could be more risk averse. There's not enough in

here to argue that QE won't be extended - most probably will continue to expect

it - but the question mark remains over timing and size. GBP50bln is the bare

minimum to keep QE going while the DMO's heavy GBP180bln issuance schedule which

is scheduled to continue to the end of July.