- BoE's MPC member Cunliffe reiterates rates can move in either direction after no-deal Brexit
Market news
14 October 2019
BoE's MPC member Cunliffe reiterates rates can move in either direction after no-deal Brexit
- Low level of interest rates a structural trend
- Monetary policy is not powerless, but expect more tools will be needed to stimulate demand in a downturn
- It is too early to say that we need more coordination between monetary and fiscal policy
- Need to approach any fundamental reengineering of relationship between BoE and treasury very cautiously
- Lower market interest rates probably reflect over pessimism about long term growth
- Expects increase pressure on banks to hunt for yield, take more risk
- As not yet seen banks take significantly more risk, regulation and memory of crisis may be restraining this, but this could be changing
- Tension U.S. reported last month were surprised
- Repo tension may tell us something about fragility of sentiment
- Brexit uncertainty generally weighing on investment
- Global economy is weaker, trade disruption hurting investment globally
- Economic outlook weaker than expected a year ago, reiterates rates can move in either direction after no-deal Brexit
- When told by audience member that people did not believe BoE would ever raise rates after a no-deal Brexit, says people expectations aren't always right
- Asked about negative BoE rates, said that they were be a very big shift to world as people know it
- Says that the BoE has other tools that would be more effective than negative rates
Market Focus
Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimerOpen Demo Account & Personal Page