BOE’s Haldane: Not reached remotely yet a view on doing negative interest rates

Dhwani Mehta FXStreet

Participating in a webinar discussion hosted by the Confederation of British Industry (CBI), the Bank of England (BOE) Chief Economist Andy Haldane said that the UK central bank has not reached remotely a view on doing negative interest rates yet.

Additional comments

On negative interest rates, says “key issues to consider are consequences on the financial sector, confidence in the economy. “

“UK economy probably shrank by more than 20% in Q2.”

“Surveys showing some stabilization and a very modest recovery in spending and business sentiment.”

“Data coming just a shade better than the BOE scenario. “

“Will be a period of prolonged caution by individuals and companies after lockdown lifted.”

“This is perhaps still a V-recovery but a lopsided V and risks are of protracted recovery.”

Market reaction

The above comments by Haldane seem to have doused the rally in GBP/USD, as the spot eases off the two-week highs of 1.2326 to now trade at 1.2315. The cable shot through the roof on reports of a likely Brexit breakthrough.

EU readies to drop ‘maximalist’ approach to fisheries negotiations with UK in Brexit talks – Reuters

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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