BoE Preview: Action stations - Commerzbank

Peter Dixon, Research Analyst at Commerzbank, suggests that against the backdrop of the EU referendum, BoE Governor Carney has indicated that in his view “some monetary policy easing will likely be required over the summer.”

Key Quotes

“To some extent the BoE has already delivered, with a reduction in banks’ countercyclical capital buffer expected to raise their effective lending capacity by the equivalent of almost 9% of GDP. But the MPC is expected to follow up with a cut in Bank Rate and we look for a reduction of 25 bps next week, taking it to just 0.25% – ever deeper into all-time low territory. More QE might have to wait, however.”