Further comments by BOE member Gertjan Vlieghe

  • But it is also appropriate to raise rates
  • Nothing has happened to challenge BOE's view about raising rates before reversing QE
  • BOE has discovered it can cut rates lower than 0.5% since it gave guidance of 2% threshold for reversing QE
  • US Fed experience of reversing QE will also influence level of rates at which BOE starts to reverse QE
  • UK rate outlook depends on uncertain economic outlook over next few years
  • Neutral UK interest rate is also very uncertain

Some further details and forward guidance on the BOE's plans to reverse their current asset purchase facilities.

The BOE currently purchases gilt of the amount £435 billion in its QE programme.

Nothing too substantial from Vlieghe. Sterling barely moving on the comments as well, rightfully so.