- BoE's Deputy Governor Ramsden: Negative rates would be a particular concern for UK banking system
Market news
21 October 2020
BoE's Deputy Governor Ramsden: Negative rates would be a particular concern for UK banking system
- BoE committed not to tighten policy until we are confident that it is appropriate to do so
- QE is BoE's marginal policy tool
- BoE could push UK yields lower
- While there might be appropriate time to use negative rates, that time is not right now
- MPC's earlier statement that negative rates at this time could be less effective still applies
- Burden of proof for any future tightening is high
- Negative rates certainly in toolbox for potential use in future as assessment of effectiveness changes
- Lower bound is likely to be different across different countries
- In some countries lower bound could be positive
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