The Bank of England meets July 14
BoE rate cuts. Given the uncertainty and likely economic downturn, we expect the BoE to use its financial crises play book. That means ignoring sterling driven inflation, quickly taking interest rates to, or close to, zero and subsequently restarting QE. We change our call a little though. We had expected a 50bp rate cut, taking interest rates to zero, on July 14. We now look for rates to be cut to 40bp to 0.1%