UK: BoE to cut 50bp in March, QE restart in April – ABN Amro

Economists at ABN Amro are expecting more aggressive easing from the Bank of England (BoE) to counter the coronavirus fallout. 

Key quotes

“At the MPC meeting on 26 March, we expect the Committee to cut by 50bp; previously, we expected a 25bp cut. This would take Bank Rate to 0.25%.”

“We expect the next move in April to be a restart of quantitative easing. In contrast to previous rounds of BoE QE, we expect this to be announced as open-ended at GBP20bn per month rather than a stock announcement.”