BOE’s Vlieghe: BOE unlikely to be able to cut rates as it did in the previous downturn

The Bank of England (BOE) policymaker Gertjan Vlieghe is on the wires now, via Reuters, making a scheduled speech, with the key headlines noted below.

Interest rates likely to stay lower for years.

Structural forces unrelated to monetary policy are likely to keep rates low.

BOE unlikely to be able to cut rates as it did in the previous downturn.

BOE analysis rules out taking rates into negative territory.

Does not believe that a recession is overdue.

Not much room for the UK gilt yields to fall much further, so more QE unlikely to provide much more stimulus.

BOE firepower is less than before previous recessions.

If you change BOE 2% inflation target, could create higher perceived risk that it will be changed again in future.

Helicopter money could put central bank independence at risk.

The Cable retreated quickly from daily tops of 1.2344 on BOE’s Vlieghe’s comments, but holds the recent upside on upbeat UK growth figures and revived hopes of an Irish backstop breakthrough.