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At yet another emergency meeting, the Bank of England MPC has unanimously decided to cut Bank rate. Analysts at Rabobank would not be surprised by further cuts.

Key quotes

“The BoE MPC suddenly announced that it had unanimously decided to cut Bank rate by 15 bps to 0.10% in an additional special meeting.”

“The MPC also voted unanimously to increase the Bank’s holdings of UK government bonds and sterling non-financial investment-grade corporate bonds by a massive GBP 200bn to a total of GBP 645bn.”

“Wartime economics means wartime deficits: it does not seem out of the question that we could see the fiscal deficit hitting double digits.”

“We would certainly not find ourselves surprised if the Bank of England continues down this path.”