BoE to resume monetary policy easing - RBS

Ross Walker, Research Analyst at RBS, suggests that the UK monetary policy easing is coming in August in the form of a rate cut – probably 25bp, possibly 50bp – is the most likely part of the package.

Key Quotes

“A revamp of the Funding for Lending Scheme also seems likely, though measures to prevent an undesirable rise in banks’ term funding costs are probably better viewed as a form of medium-term insurance than near-term stimulus. The biggest question revolves around QE gilt purchases. In our view, a resumption of QE is more ‘when’ than ‘if’. On balance, November seems more likely than August.”