Further comments by BOE governor, Andrew Bailey

  • There are a lot of issues with negative rates
  • No country has used negative rates in 'retail' end of the financial market
  • Transmission of negative rates depends on banking system
  • BOE is doing a lot of work on whether negative rates are practical
  • There are good reasons to think we're in a world of low interest rates for a long period of time
  • Outlook for interest rates hinges on productivity growth

I wouldn't look too much into his remarks on negative rates for the time being as they will change according to how the central bank sees fit to pluck into their narration.

If the economy does much worse in the coming months, then suddenly negative rates will prove to be "effective" since they might actually start exploring it.

Otherwise, they'll try to skirt around the topic and keep it "in the middle" as above.