BOE’s Vlieghe: Hard to know whether negative rates are 'state dependent' as a policy tool

Dhwani Mehta FXStreet

It is difficult to determine whether negative rates are ‘state-dependent’ as a policy tool, the Bank of England (BOE) policymaker Gertjan Vlieghe said while commenting further on the monetary policy tools available for the central bank.

Additional comments

"QE absolutely remains an available tool for BOE."

"Unwinding QE slowly can be pain-free."

“Tiering systems have been effective in getting some of the benefits of negative rates while reducing costs.”

“Main concern about no-deal end to the EU transition period would be business and consumer confidence, exchange rate.”

“BOE would have some tolerance for short-term inflation caused by a no-deal end to the EU transition, due to slack in the economy.”

“Rise in interest rates on high loan-to-value mortgages reflects an increase in their risks.”

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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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