BoE's Bailey: Decision on negative rates is not in any sense imminent

The decision on negative rates is not in any sense imminent, Bank of England (BoE) Governor Andrew Bailey said on Thursday and reiterated that it's a complex issue.

Additional takeaways

"BoE is trying to work out implications for the UK economy of other countries' experience with negative rates."

"There would be important issues around implementation and communication if BoE takes rates negative."

"Evidence suggests economic downturn has not been as severe as in May scenario but let's not get carried away."

"Labour data has been mixed but I think the news was on the downside."

"Labour market news probably more relevant for judging inflation risks."

"Now expecting 20% fall in GDP in Q1 and Q2 combined vs 27% fall in May scenario."

"BoE does not have specific triggers for further increases in QE."

"MPC has not spent any time talking about targeting the yield curve."

"Slowing of the pace of QE reflects recent signs from the economy and calming of markets since March."

"We are slowing from warp speed on QE to something which is still fast by historical standards, the Fed has slowed QE pace too."

"It would be wrong to see the slowing of the pace of QE as a tightening of policy."

"Trajectory on inflation is for it to fall to very low levels."

Market reaction

The GBP/USD pair continues to edge lower after these comments and was last seen losing 0.95% on the day at 1.2435.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

AUD/USD bulls stepping in on the US dollar's stalling, prospects are technically bullish

AUD/USD bears bailing out as price consolidates the down move. US dollar giving back some ground, could give rise to healthy upside correction in AUD crosses. Despite the market chatter about Reserve Bank of Australia cuts next month, AUD/USD is performing the bid in improved risk appetite.


EUR/USD bounces from fresh lows, risk skewed to the downside

EUR/USD trades in the 1.1670 price zone, as demand for the greenback eased during US trading hours, following dismal US employment-related data.


XAU/USD catches a bid at $1850 but the retracement may not be over

Gold has been moving in a downward trajectory since the greenback strength kicked in on 1st September. Since then, the greenback has broken out of consolidation zones in EUR/USD and most of the other majors. 

Gold News

WTI holding the $40's, but a fade on rallies is the technical playbook

WTI bulls taking the baton from the bears on Thursday against an otherwise technically bearish backdrop. Demand-side fundamentals demand greatly on a vaccine. Commodities are performing well as ...

Oil News

Bitcoin and Ethereum rebound strongly and are poised for further gains

Bitcoin confirmed a 4-hour bear flag that got almost no continuation and went straight into a massive move towards $10,700. Similarly, Ethereum also bounced back up, although its bounce is comparatively weaker, it is trading at $347. 

Read more