Bank of America Global Research discusses its expectations for the BoE's August policy meeting.
"Aside from an already implied cut to the QE purchase pace, we expect no policy changes at next week's BoE policy meeting. The BoE will likely moderate the sharp 'V' recovery it previously expected. Watch out for any update on the review of negative interest rates...In November, we expect the BoE to cut the lower bound negative, cut Bank Rate to 0, cut the TFS rate below Bank Rate and authorize another £100bn QE," BofA notes.
"The August meeting is likely to be a placeholder, bar some technical modifications to the QE program. As such, we do not see this as an important milestone for GBP through August. It will, however, reinforce a bearish dynamic that we think will increasingly take hold in the final months of the year both from a policy perspective and a political one," BofA adds.