(Bloomberg) -- The Bank of England’s dovish shift in the past week has already rippled through markets, and now economists are starting to react too.
Royal Bank of Scotland Group (LON:) Plc changed its interest-rate forecast and now sees a cut to 0.5% from 0.75% at this month’s meeting. It also sees a second reduction later in the year, having previously predicted no move by the BOE at all until May.
RBS’s change of view may be followed by others after Governor Mark Carney and other policy makers said the BOE is looking at whether more stimulus is needed for the economy. Those comments have already sent the pound on its worst losing streak since May, and market bets on a rate cut on Jan. 30 have jumped to around 50%.
Economic data on Monday showed the U.K. economy unexpectedly shrank in November. The year-on-year rate of 0.6% was the weakest since mid-2012.
RBS said there’s been an “unmistakable underlying deterioration in the U.K. economic data.”
The fell 0.2% to $1.2967 as of 9.10 a.m. London time, heading for a sixth straight decline. U.K. government bonds rose, pushing down three basis points to 0.72%, the lowest since early December.
In his first major speech of 2020, Carney said the Monetary Policy Committee has plenty of firepower to aid the economy if necessary. Policy maker Silvana Tenreyro said she may support a rate cut in the next few months if sluggish global growth and Brexit uncertainty persist. Gertjan Vlieghe went further, saying he’d need to see an improvement to justify waiting to cut.
Other relevant articles
[2020-01-09 19:15:08] BlackRock joins investor group seeking emission curbs
[2020-01-06 21:15:24] Byron Wien Predicts S&P 500 Will Top 3,500 as Fed Cuts Rates
[2019-12-20 11:20:11] Japan reversed export curbs for chip material to South Korea:...
[2019-12-19 09:15:08] Premarket London: RBS Shakes up Management at NatWest Markets
[2019-12-19 08:40:15] Prremarket London: RBS Shakes up Management at NatWest Markets
[2019-12-19 08:30:08] RBS clears out top executives at investment bank NatWest Markets
[2019-12-17 11:20:04] RBS, Lloyds shares fall after Bank of England stress tests
[2019-12-13 14:40:13] Russia eyes temporary import curbs on Chinese citrus fruit
[2019-12-13 07:00:18] Regulator puts loading curbs on 737 jets converted to freighters...
[2019-12-12 14:15:08] Researchers criticize AI software that predicts emotions
[2019-12-12 13:15:08] Delta predicts 2020 profit growth; CEO says more people turning...
[2019-12-11 05:26:56] Singapore Property Developer Wants Curbs Eased to Beat Glut
[2019-11-25 20:20:24] NewsBreak: Bed Bath & Beyond Jumps as Analyst Predicts Turnaround
[2019-11-22 16:10:12] EU takes Indonesia to WTO over nickel ore export curbs
[2019-11-19 09:30:05] Airbnb lobbies local Japan governments to ease curbs for Olympics
[2019-11-15 03:15:12] Oil rises on hopes for OPEC supply curbs, new optimism on...
[2019-11-12 09:35:05] Huawei to give staff $286 million bonus for helping it ride out U.S. curbs
[2019-11-11 13:45:23] Lebanon central bank says bank deposits are safe, banks to review...
[2019-11-11 12:20:23] HSBC and RBS set to launch new digital banking platforms
[2019-11-07 10:30:09] China seeks to attract more foreign investment, ease curbs
[2019-11-01 13:55:11] Traders pare bets on interest-rate cuts after strong jobs report
[2019-10-31 18:30:10] StockBeat: Goldman Predicts 60% Jump in Lyft
[2019-10-28 18:25:24] Factbox: Soft or hard - emerging markets flirting with capital...
[2019-10-24 08:50:09] Premarket London: AstraZeneca Scores in China; RBS Swings to 3Q Loss
[2019-10-24 08:25:07] Premarket London: RBS Swings to 3Q Loss on PPI Charge
[2019-10-17 08:25:07] RBS boosts Brexit contingency fund to 8.2 billion stg
[2019-10-13 07:30:20] South Korean PM set for highest-level visit to Japan next week...
[2019-10-08 16:40:04] RBS investors call on new boss Rose to shrink NatWest Markets
[2019-09-30 16:10:23] Stocks - Wall Street Rises as Chinese Capital Curbs Downplayed
[2019-09-25 11:50:08] Depositors panic as curbs put on major Indian co-operative bank
[2019-09-17 05:10:30] China’s Home-Price Growth Slows for Third Month as Curbs Bite
[2019-09-16 13:50:23] South Korea files WTO dispute with Japan on export curbs
[2019-09-13 17:26:33] Trump says China trade talks going well, predicts good deal or no deal
[2019-09-13 17:20:12] Exclusive: WeWork considers dramatic valuation discount ahead of...
[2019-09-11 22:35:12] Democrats see silver lining in suburbs, but rural challenges remain after close loss
[2019-09-11 16:02:55] French PM predicts budget deficit at 3.2 percent of GDP in 2019: Les Echos
[2019-05-22 05:00:19] Japan says U.S. curbs on auto imports would hurt global economy
[2019-05-16 05:50:14] Australia Unemployment Rises, Boosting Odds of Interest-Rate Cut
[2019-05-01 08:15:13] China planning to roll back curbs on private share placements:...
[2019-05-01 07:50:14] China planning to roll back curbs on private share placements: Caixin
[2019-04-25 15:35:23] RBS considering internal and external candidates for CEO role: chairman
[2019-04-23 01:15:37] RBS tops up small business support fund, downplays Brexit effect
[2019-04-20 16:25:20] Heavy clashes break out in southern suburbs of Libyan capital:...
[2019-04-08 06:15:26] China to relax residency curbs, boost infrastructure in new...
[2019-03-13 23:50:28] U.S. proposes stricter curbs on e-cigarette sales
[2019-03-06 15:25:30] Abercrombie predicts strong 2019 sales, shares surge
[2019-03-06 02:21:11] House Democrat predicts request for Trump tax returns in two...
[2019-03-05 21:55:24] Malaysia in last ditch effort to avert EU palm oil curbs
[2019-03-05 16:00:24] Bank of America, RBS sued in U.S. over euro bond cartel
[2019-02-14 13:00:30] Britains RBS one of eight banks in EU bond cartel probe - Bloomberg
[2019-02-12 09:10:12] Russias economy ministry predicts growth slowdown in 2019
[2019-02-12 08:20:11] Russias economy ministry predicts growth slowdown in 2019
[2019-02-08 19:55:24] EU needs stronger anti-fraud curbs, lawmakers say, after Danske...
[2019-02-01 13:55:19] Amazon, Walmart Reel as India Curbs Plunge Market Into Chaos
[2019-01-30 14:15:18] Venezuelas Maduro says Trump out to kill him, Russia seeks talks
[2019-01-30 05:06:38] Venezuela power struggle heats up with Guaido curbs, protest plans
[2019-01-28 15:35:42] Snapdeal backs Indias e-commerce curbs, assures compliance
[2019-01-25 13:25:23] Exclusive: Hindu group RSS urges Indias Modi to resist U.S. push to ease e-commerce curbs
[2019-01-22 15:50:14] Supreme Court to weigh New York City curbs on transporting...
[2019-01-17 17:35:23] RBS seeks investor backing for share buyback plan
[2019-01-17 11:10:23] Exclusive: Indias e-commerce curbs could hit online sales by $46 billion by 2022: PwC draft analysis
[2019-01-16 15:15:19] EU agrees to extend steel import curbs until 2021
[2019-01-14 15:50:30] Trump predicts U.S. will reach trade deal with China
[2019-01-09 11:42:22] Riksbank predicts Sweden will be cashless within five years
[2019-01-09 11:39:40] Japan eases conditions for solar power subsidy curbs
[2019-01-09 11:38:43] EU blames U.S. for deep crisis at WTO, criticizes U.S. trade curbs
[2019-01-09 11:37:17] Spurned by Congress, Trump administration seeks food stamp curbs via rule change
[2019-01-09 11:33:32] Exclusive: Indian central bank delays discussing easing curbs despite government pressure - source
[2019-01-09 11:31:40] South Koreas Kakao invests in Israeli blockchain firm Orbs
[2019-01-09 11:31:08] Oil Prices Turn Lower as Trump Adviser Predicts More Cases Like Apple
[2019-01-04 15:55:22] Trump Predicts Financial Markets to Calm Down, Blames Democrats
[2019-01-03 17:20:20] Oil Prices Turn Lower as Trump Adviser Predicts More Cases Like...
[2018-12-20 11:15:17] Spurned by Congress, Trump administration seeks food stamp curbs...
[2018-12-20 03:30:19] Chinas Guangzhou city relaxes curbs on commercial property
[2018-12-17 14:45:31] EU blames U.S. for deep crisis at WTO, criticizes U.S. trade curbs
[2018-12-16 21:20:23] French PM predicts budget deficit at 3.2 percent of GDP in 2019:...
[2018-12-13 21:10:18] U.S. Agriculture chief predicts more farm aid payouts despite...
[2018-12-13 09:25:16] South Koreas Kakao invests in Israeli blockchain firm Orbs
[2018-12-12 19:15:19] Oil up 1% After Modest U.S. Stockpile Draw; OPEC Predicts Tougher...
[2018-12-10 09:15:29] China property to cool in 2019, weigh on economy, curbs may be...
[2018-12-06 18:30:19] Exclusive: Indian central bank delays discussing easing curbs...
[2018-12-06 02:35:16] Japan eases conditions for solar power subsidy curbs
[2018-12-05 14:15:20] Britains city watchdog taken to court over RBS executives
[2018-12-04 18:30:21] Riksbank predicts Sweden will be cashless within five years
[2018-11-16 11:35:34] Chinas U-turn on market curbs brings back the speculators
[2018-11-16 07:35:22] Chinas U-turn on market curbs brings back the speculators
[2018-11-14 17:25:23] Denmark to consider curbs on convicted investors after tax fraud
[2018-11-11 15:15:23] Iran sells more oil to private exporters to bypass U.S. curbs
[2018-11-06 13:35:10] Higher prices, lending curbs dim Diwali festival for Indian...
[2018-11-05 16:45:32] U.S. imposes more sanctions on Iran, Tehran decries bullying
[2018-10-16 17:55:07] U.S. Fed says terminates 2013 enforcement action against RBS...
[2018-10-12 12:40:17] Britains RBS pays first dividend in decade
[2018-10-09 03:15:29] EU nations divided on 2030 CO2 curbs for cars, vans
[2018-10-02 13:55:09] Japan car makers welcome North America trade deal, but U.S....
[2018-09-21 16:45:14] Lawmakers criticize RBS and Barclays for online banking outages
[2018-09-14 10:05:23] One dead, a dozen injured in gas blasts in Boston suburbs
[2018-09-14 01:20:17] RBS CEO edited the truth in evidence session: British lawmakers
[2018-09-11 08:40:11] Exclusive: China may let provinces set own winter output curbs...
[2018-09-07 19:15:20] U.S. should adopt UK-style bank risk buffers and mortgage curbs:...
[2018-09-05 13:25:16] German cabinet approves bill to tighten rent rise curbs