A coordinated response: Now what’s next for the UK?
The UK’s policymakers acted in concert on 11 March to guard against the impact of the COVID-19 outbreak…
… with a 50bps rate cut and liquidity measures from the BoE and a GBP30bn package of tax breaks and other measures from the Chancellor
But will it be effective, and what more could they do if the situation worsens?
We think the outlook is bullish for gilts and forecast 10-year yields of 10bp for the end of Q1 and Q2
However, we tone down our GBP bullishness; we now see GBP-USD at 1.35 this year (from 1.45 previously)
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