|

BoE Examining Negative Rates, Haldane Tells Telegraph – BBG

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?

Author

Ross J Burland

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

More from Ross J Burland
Share:

Editor's Picks

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.