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Morgan Stanley Says Risk BOE Will Cut Rates Below Zero Is Real
The prospect of negative interest rates from the Bank of England is looming back into view, with Morgan Stanley expecting moves in that direction this year. Policy makers could start sending signals on cuts in August, before taking the base rate to zero in November and eventually cutting even further, according to the bank’s analysis. The BOE could even reduce rates as far as minus 50 basis points in the first half of 2021 according to Jacob Nell, a London-based economist at the bank, although he only puts the chances of that at 20%, “if we have a hard Brexit or bad Covid,” according to emailed comments. Such ... (full story)