Forex Flash: BoE easing eyed – Goldman Sachs

FXstreet.com (Barcelona) - According to the Economics Research Team at Goldman Sachs, We remain of the view that the BoE will ease further and that this easing will take the form of credit easing or other ‘unconventional unconventional’ measures, rather than purchasing more Gilts (although it is possible that further credit easing measures could be supplemented with more QE).” These measures could take a number of different forms, including extending the FLS, reducing the remuneration rate on central bank reserves and (even) the direct purchase of assets other than Gilts.

The analytical work required to decide how best to ease further is likely to take until the
May Inflation Report (at least). Consequently, while these preparations have been taking place, the March MPC meeting was something of a ‘holding operation’ and we expect the April MPC meeting to be similarly uneventful.