The initial recovery has been encouraging, but the downside risks remain. We think much more support will eventually be needed in the form of a further £250bn of QE in total (the consensus is £100bn more). As the current QE programme will continue until the end of the year, the MPC does not need to act at its next meeting on 17th September. Instead, it will probably wait until November, when the damage to the labour market is clearer, to announce the next £100bn instalment of QE.
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