The Bank of England went full headless chook* on Thursday,
PIMCO says Nah:
- Near-term uncertainty is high, but we think risks are skewed to a more shallow recession than what the BoE is forecasting.
- Falling energy and commodity prices, as the market is discounting for next year, should eventually moderate the real income squeeze.
- And the BoE does not incorporate any new fiscal stimulus, which we believe remains a possibility for next year.
* This is an Australian expression, in a nutshell, to panic.