In yesterday’s MPC testimony to the parliamentary Treasury Select Committee the Bank of England deputy-governor Chris Tucker said that he had brought a discussion on negative interest rates to the table.
Said Mr Tucker:
“This would be an extraordinary thing to do and it needs to be thought through carefully.”
Here’s a couple of background articles.
http://www.bbc.co.uk/news/business-21589128
It was this comment that understandably grabbed the headlines along with his view that real fx rates should be lower. GBP had an immediate dip then settled but seems to be on a little move lower at the moment.
