WEEK AHEAD: Without a shadow of a doubt, the.....>

UK: WEEK AHEAD: Without a shadow of a doubt, the most important UK event in the

upcoming week will be the Bank of England MPC policy decision on Thursday. We

are currently in the process of compiling our BoE preview but consensus is clear

- around 75% of the sell side previews we have read so far look for a GBP100bln

QE extension with most noting risks of a larger expansion to the programme. The

remaining 25% or so of the previews that we have read so far look for a larger

than GBP100bln announcement of QE with a couple of banks looking for another

GBP200bln increase as their base case.

- It will not just be the size of the QE programme but any update on the

language of the pace of purchases that will be important for the market. When

the current QE programme was announced the MPC stated that purchases were to be

"carried out as soon as operationally possible and consistent with improved

market functioning". This broke with precedent where asset purchases have

previously been announced to be completed by a certain date. There is consensus

that purchases will continue at their current pace until at least the end of

July due to the heavy issuance schedule already announced for that period. (1/2)