VIEW: Wednesday saw Goldman Sachs note that.....>

BOE: VIEW: Wednesday saw Goldman Sachs note that "in our view, a further

reduction in Bank Rate remains relatively low in the pecking order of next steps

for monetary policy - below further quantitative easing, and below further

credit easing." But "given the scale of the coronavirus crisis, we would not

rule out further reductions in Bank Rate - to a level below zero - in the event

of a deeper downturn in the real economy. The effective lower bound is unlikely

to be set in stone at +0.10%, even if the marginal effectiveness of further

reductions in Bank Rate diminishes below that level. Adjustments to the Term

Funding Scheme alongside any additional cuts in the policy rate are likely to be

able to absorb a share of the burden. The Governor noted today that "now is the

time" to examine which policy tools the MPC has to hand, and which tools the MPC

might have in the future. For now, however, we continue to think that the scale

and composition of BoE asset purchases are more likely to be the next

instruments deployed by the MPC, especially in a context in which fiscal policy

is the first mover. We maintain our base case that the Committee will announce

an additional GBP100bn of gilt purchases at its next decision on 18 June."