BOE's Vlieghe: Tiering has been effective in getting the benefits of negative rates, while reducing costs
Further comments by BOE policymaker, Gertjan Vlieghe
- BOE would have some tolerance for short-term inflation cased by no-deal Brexit
- Main concern about a no-deal Brexit is on business, consumer confidence and the exchange rate
The headline comment continues to make a case for negative rates to be introduced by the BOE in the future. A bit of a clarification to one of his earlier remarks here:
"My own view is that the risk that negative rates end up being counterproductive to the aims of monetary policy is low."
Add that to his comment that QE is being less effective, Vlieghe is looking to be a staunch supporter of the central bank diving into negative interest rates policy (NIRP).