LONDON (MNI) – Economists at Barclays have changed their call on
Bank of England policy, and now expect further monetary stimulus.
Barclays economists, who had previously thought there would be no
further stimulus, are now predicting a fresh Stg50 billion of
quantitative easing in November and that Bank Rate will also be cut then
from its current 0.5% to 0.25%.
Analysts are split over whether there will be further QE and only a
minority expect a cut in Bank Rate, although at face value money markets
are pricing in a reduction in Bank Rate.
Barclays economists said they had pushed back their forecast for
the first Bank Rate hike to Q1 2014 from Q3 2013.
-London newsroom: 00 44 20 7862 7491; e-mail: drobinson@marketnews.com
[TOPICS: M$B$$$,M$$BE$]