There will be a lot of focus today on the.......>

BOE: There will be a lot of focus today on the testimony by MPC members in front

of the Treasury Select Committee which is due to begin at 14:30BST.

- Governor Bailey will be joined by Deputy Governors Broadbent and Cunliffe,

external MPC member Haskel and Elisabeth Stheeman of the FPC.

- There has been much focus on whether the Bank will take rates into negative

territory. As far as we are aware no sell side banks have this as their base

case but Bank of America and Morgan Stanley both see 10bp cuts to zero.

- Rather than cutting rates explicitly, consensus at the moment is shifting to

lowering the rate on the Term Funding Scheme (TFS). This currently allows banks

to borrow at Bank Rate, but there are growing expectations that just like the

ECB's TLTRO programme can see bank's borrowing at rates below the deposit rate,

the BoE could allow borrowing via the TFS at a spread below Bank Rate - likely

negative. A combination of easier TFS conditions with more QE are expected.

- It doesn't make sense for the BOE to rule out negative rates here, they will

want to keep all options open and a dovish rhetoric, but to us negative rates

still look unlikely in the short-term.