World News

Nomura predict BoE to make emergency rate cut this week

LONDON (Reuters) – Japanese bank Nomura predicts the Bank of England will make an emergency cut to its main interest rate this week, following the U.S. Federal Reserve’s decision to take similar action earlier on Tuesday to reduce the economic impact of the coronavirus.

“We have, therefore, adjusted our view to … an emergency 25bp rate cut this week allowing the Bank time to formulate a plan for more targeted easing at the end of the month,” Nomura economists George Buckley and Chiara Zangarelli wrote.

BoE Governor Mark Carney said on Tuesday, before the Fed decision, that he expected central banks and governments to take “powerful and timely” action in response to the economic hit from coronavirus which has raised fears of a new global recession.

(Reporting by David Milliken; editing by Stephen Addison)