Further comments by Haldane
- Nothing new to say on negative rates
- BOE is doing work on negative rates, not the same as being ready to use it
- Monetary policy can provide more of a cushion to the crisis
- But more of the heavy lifting has to be done by fiscal policy
The messaging from the BOE on negative interest rates policy (NIRP) is still a confusing one, as evident by comments by MPC member Vlieghe yesterday here and here.
As much as Haldane wants to deflect and keep the market "guessing", it seems like going down the NIRP path is an inevitability for the BOE next year - if not the year after perhaps.
