"We are likely to see a number of credit events and defaults," Bank of England Monetary Policy Committee (MPC) member and Deputy Governor, Sir Jon Cunliffe, said on Tuesday.
Commenting on the possible use of negative interest rates, "we should not draw dogmatic lines," Cunliffe said and noted that they haven't asked the private sector to make preparations on that. "The impact on the financial structure is a particularly acute issue," he added.
The GBP/USD pair edged slightly lower from session highs on these comments and was last seen gaining 0.25% on the day at 1.2327.
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.