BOE to expand QE next month, 40% chance of a no-deal Brexit – Reuters poll

According to the latest Reuters poll of 78 economists, the Bank of England (BOE) is likely to boost its quantitative easing next month to support the economy, which is battling the coronavirus resurgence and Hard Brexit fears.

Key findings

“While the Oct. 13-19 poll predicted 16.7% growth last quarter, the outlook has darkened.“

“The economy is expected to expand 2.6% this quarter and 1.0% next - weaker than the respective 3.4% and 1.3% median forecasts are given last month.”

“For all of 2020, the economy will contract 10.1% but expand 6.1% next year, compared with the respective -10.0% and +6.1% forecasts given last month.”

“59 of 64 economists who responded to an extra question saying the MPC would not take it below zero, the focus will be on bond-buying or quantitative easing.”

“A median 40% chance no deal is made, unchanged from last month. It said the most likely outcome was still some form of a free trade agreement.”