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SocGen view following the MPC meeting

BOE

Now expects NIRP in early 2021

  • SocGen states that it now expects "a move to negative rates to be part of the policy stimulus that the Bank is likely to deliver early in 2021."
  • On the NIRP discussion in the Minutes, SocGen notes that "this passage has the tone of a decision having already been taken to use it, the next stage being to prepare the operational details of its implementation. The final sentence tells us that they will make the preparations in 4Q, with the implication that they will be ready to use it from 1Q 21 onwards."

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