Negative rates are off the table it seems

  • BOE is very clear that the lower bound is above zero
  • Banks have no excuse to pass on this rate cut (we'll see Mr. C, we'll see)
  • With TFS there is no reward or penalty for the banks
  • BOE discussed policy options with fin min Hammond
  • Hammond was fully briefed about BOE thinking
  • Brexit has created an unusual situation

Perhaps the BOE should have waited for the "unusual" situation to become clearer before using "usual" monetary policy?