Bloomberg News reports that the Bank of England "is examining unconventional monetary policy measures more urgently amid the economic slump caused by the coronavirus pandemic, according to its Chief Economist Andrew Haldane."
The central bank is reviewing a number of policies -- including negative interest rates and expanding the scope of the bank’s asset-purchase plan to include riskier securities -- as it is running low on conventional easing space, Haldane said in an interview with the Telegraph. He stressed that the BOE isn’t poised to impose any of those polices imminently.
'It’s something we’ll need to look at -- are looking at -- with somewhat greater immediacy,' Haldane said when asked if borrowing costs could go below zero. 'You mention negative rates, but there are other options beyond that, or alongside that, that we’re looking at as well.'
Market implications
There are immense pressures and a fundamental cause for the pound to continue lower. For instance: Ministers move coronavirus teams back to no‑deal Brexit planning – Sunday Times.
In today's Chart of The Week, we take a look at EUR/GBP: Chart of The Week: EUR/GBP Price Analysis, bullish to 0.9060, although pullback to support first?
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