VIEW: HSBC note that "Chancellor Rishi Sunak....>

BOE: VIEW: HSBC note that "Chancellor Rishi Sunak can stand up today and say

that the UK's policymakers are launching a coordinated plan to support the

economy: the BoE moves will assist lending to businesses, and the government is

likely to help by providing tax breaks and other assistance. The BoE's comments

later today will provide some guidance as to their next move, but clearly, in

the near term, the risks to UK interest rates remain to the downside. In terms

of rates, there is really only one further cut possible: new Governor Andrew

Bailey told the Treasury Select Committee last week that he agreed with current

Governor Mark Carney that the lower bound stood at 0.1% and that negative rates

were not appropriate for the UK. More QE is a possibility, of course. By way of

example, our hypothetical forecasts in the event of a 'no deal' Brexit in 2019

were for Bank Rate to be cut to 0.1%, and an additional GBP65bn of QE, taking

total purchases to GBP500bn."