BoE will cut rates twice in 2020, BofA says

Uncertainty around the future trading relationship between the UK and European Union will lead to two interest rate cuts by the Bank of England in 2020, a top-ranked research team said.

According to analysts at Bank of America Global Research, Britain's gross domestic product was set to flatline in the last quarter of 2019.

However, rate-setters at the Old Lady of Threadneedle Street would wait to see how the economic data panned out following the general election before acting.

Their forecast was for a quarterly rate of growth of 0.0% over the three months ending in December.

"Uncertainty remains as unclear what UK-EU trade relationship will apply after next year. We expect short-lived growth bounce," BofA said in a research note sent to clients.

Purchasing managers indices for the UK needed to "surge" in order to result in even a "mini" growth bounce, they added.