Further remarks by BOE governor, Andrew Bailey
- Negative rates is not something we're contemplating
- But it's always wise not to rule anything out forever
- It would require an extensive communications exercise to pursue negative rates
- It is a very big step, create problems for banks
- Doesn't see evidence that there is going to be a rapid rise in inflation
This is roughly similar to his remarks from yesterday, in saying that "negative rates is not a tool we think we would use". But he did leave a small gap in the door, saying that it would not be wise to "rule anything out forever" though.
Cable is trading just under the 1.2200 handle now, around 1.2195 as the dollar holds slightly firmer on the session after Trump's earlier remark on a stronger currency.
