BoE: The package is delivered - TDS

Research Team at TDS, notes that the BoE’s MPC delivered its big stimulus “package” yesterday, with a number of easing measures spread across a number of different fronts.

Key Quotes

“A combination of a “conventional unconventional” policy of rate cuts and QE was complemented with corporate bond purchases and a scheme to encourage banks to passthrough lower interest rates.

The MPC signalled that all policy measures can be expanded as required, and indicated that another cut in Bank Rate to “close to” zero would be warranted if its 2016 growth forecast materialises.

Governor Carney repeatedly reiterated during the press conference that negative rates were not—and would not be—on the table.”