Will there be a coordinated BoE rate cut.........>

UK: Will there be a coordinated BoE rate cut alongside the Budget? Nomura put a

60% chance of a 25bp cut happening tomorrow while TD Securities say there are

"heightened risks of a coordinated fiscal and (inter-meeting) central bank

easing package". JP Morgan also state that the Italian response to the spread of

the virus "raises the chance of an early rate cut...on Wednesday." We would in

no way rule this out, but it may be construed as a panic move. Given that the

BoE are in the midst of a forecast round, MPC members may be more inclined to

wait another two weeks to decide on the magnitude of stimulus that is

appropriate. We note that the MPC has form to wait - after the Brexit referendum

(held on 23 June 2016) the MPC voted to keep policy unchanged at its scheduled

meeting on 14 July before cutting rates at its next scheduled meeting on 4

August.

- For the full MNI's UK Budget: What to Watch? See

https://emedia.marketnews.com/MNI_UK_Budget_-_March_10_2020.pdf