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Economist at UOB Group Lee Sue Ann believes the BoE could still ease further its monetary conditions in the next periods.

Key Quotes

“The BoE had cut rates by 65 bps to 0.10%, which is its view of the lower bound, an increased its asset purchase target to GBP645 bn. Estimates suggest that the BoE still has plenty of space to expand its current QE program. There are GBP390 bn of gilts currently available to buy and that is before the enormous issuance due this year. As such, the sluggish economic backdrop would put the prospect of more BoE easing on the table.”