BOE decision: No longer expect a rate cut in November - RBS

Analysts at RBS note that they have revised their earlier call of a BOE Nov rate cut to a no Nov rate cut now, in response to the recent GBP weakness.

“We have revised our BoE forecast: we no longer expect a 15bp cut in Bank Rate to 0.1% in November. “

“The change reflects the ongoing depreciation in sterling and slightly firmer-than-expected activity data (notably the Q3 preliminary GDP outturn).“

“Although we expect the MPC's CPI projections to be nudged higher at the 2-3 year forecast range (by 10-15bp), we still expect further policy easing: a 15bp rate cut and a £60bn QE extension in February 2017.”