BOE’s Ramsden: Debt, higher borrowing was a necessary response to the coronavirus crisis
In a CNBC interview, the Bank of England (BOE) Deputy Governor Dave Ramsden said that the debt and higher borrowing was a necessary response to the tackle the coronavirus pandemic.
Additional comments
“Yields in the gilt market are extraordinarily low.”
“Trends over many years have pushed down rates.”
“We are not actively planning for negative rates.”
“We are using tried and test policies such as QE.
“Important to stress that negative rates are now in the toolbox.”
“Financial structure is a key conditionality for negative rates.”
“Believes that BOE can support the transition by keeping rates low.”
Market reaction
The above comments have little to no impact on the pound, as GBP/USD remains at the mercy of the dollar price action.
At the time of writing, the cable drops 0.30% to 1.3105, having hit a daily low of 1.3086 earier in the Asian session.
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.
