Bank of England stepped up its QE measures
- Today the Bank of England (BoE) announced to step up its QE programme, buying another £150 bn of gilts until end-2021.
- The bank intends to implement the purchases flexibly.
- The move followed a materially changed macroeconomic forecast to reflect the latest Covid-19 lockdowns.
- Looking ahead, in case of prolonged lockdown measures combined with a hard Brexit we now see negative interest rates in next spring to be slightly more likely than not.