BOE’s Vlieghe: Hard to know whether negative rates are 'state dependent' as a policy tool
|It is difficult to determine whether negative rates are ‘state-dependent’ as a policy tool, the Bank of England (BOE) policymaker Gertjan Vlieghe said while commenting further on the monetary policy tools available for the central bank.
Additional comments
"QE absolutely remains an available tool for BOE."
"Unwinding QE slowly can be pain-free."
“Tiering systems have been effective in getting some of the benefits of negative rates while reducing costs.”
“Main concern about no-deal end to the EU transition period would be business and consumer confidence, exchange rate.”
“BOE would have some tolerance for short-term inflation caused by a no-deal end to the EU transition, due to slack in the economy.”
“Rise in interest rates on high loan-to-value mortgages reflects an increase in their risks.”
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