I think it is inevitable furlough scheme will come to an end

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Further comments by Raab

One of the negative factors weighing on the pound right now is the lack of prolonged fiscal support should there be more virus restrictions introduced.

The furlough scheme is set to expire in October and that is setting up to be another cliff-edge risk for UK assets, alongside a similar risk of a no-deal Brexit.

That means the BOE may have to be called in to offer support sooner rather than later, which is why Bailey’s pledge yesterday i.e. not looking at negative rates in the near-term, certainly doesn’t hold much standing should things get worse.

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