BOE's Ramsden: We are not about to use negative rates imminently
Ramsden says that he still sees the effective lower bound at 0.10%
The pound is liking his comments here on negative rates, as cable pushes to a fresh session high of 1.2852 from around 1.2830 earlier.
- BOE central case is the economy recovery steadily
- But there are real uncertainties and risks from virus, US election, Brexit
- Need to also factor in Sunak's changes to jobs support
- Engagement with banks on negative rates will take time
The BOE's communication on negative rates has been all over the place, so I wouldn't put too much attachment to Ramsden's remarks. But for now, it is enough to give the pound a decent lift, with cable looking to firmly clear its 200-hour moving average @ 1.2831.