Deutsche Bank analysts suggest that in today’s BoE decision, no policy change is expected however Deutsche Bank’s economists expect a dovish message, with the BoE dropping its tightening bias and instead moving towards an easing policy stance.
Key Quotes
“They note that domestically, data have deteriorated sufficiently to warrant more supportive monetary policy. Growth has slowed and is tracking below the Bank’s “speed limit” of 1.5% with uncertainty likely weighing further on the near-term growth outlook.”
“Equally, the UK supply side story is also turning softer, with labour market indicators pointing to downside risks for both pay and jobs by Q4 2019 and inflation now expected to remain below target in 2020. As a result our economists no longer forecast a hike next year and instead see an increasing risk of a rate cut at the January Inflation Report – Governor Carney’s final MPC meeting.”
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