BOE's Ramsden: We are not about to use negative rates imminently

Author: Justin Low | Category: Central Banks

Ramsden says that he still sees the effective lower bound at 0.10%

  • 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 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.

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.
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