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Economists at Rabobank expect the Monetary Policy Committee to keep its policy settings unchanged at this week’s meeting.

Key quotes

“We expect that the BoE’s MPC will keep the benchmark interest rate unchanged at 0.10% at this week’s meeting. The path towards a negative policy rate hasn’t opened up yet, and the OIS forward curve is almost completely flat.”

“Even as there are no expectations for policy changes going into this meeting, the MPC’s outlook will gather a lot of interest. We will see the first set of official forecasts that incorporates the impact of the Covid-19 pandemic.”

“While we think that the BoE will eventually have to increase the size of its Asset Purchase Facility again, we only expect such a decision at the June meeting.”