According to the latest Reuters poll of 78 economists, The Bank of England (BoE) is likely to push its quantitative easing next month to support the economy, which is struggling with the resurgence of the coronavirus and fears of a hard Brexit.
Key Comments:
“While the October 13-19 survey predicted growth of 16.7% last quarter, prospects have darkened“.
“The economy is expected to expand 2.6% this quarter and 1.0% next, weaker than the respective average projections of 3.4% and 1.3% given last month. ”
“For all of 2020, the economy will contract by -10.1% but will expand by 6.1% next year, compared to the respective forecasts of -10.0% and 6.1% given last month. ”
“59 of 64 economists who responded to an additional question said that the Monetary Policy Committee would not take the rate below zero, the focus will be on buying bonds or quantitative easing. ”
“Come one 40% average probability of no deal being reached on Brexit, unchanged from last month. They said the most likely outcome was still some form of free trade agreement. ”
Credits: Forex Street
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