Sterling is given a lift by BoE Deputy Governor Dave Ramsden’s comment in an interview with the Society of Profession Economists. He said, “for me, I see the effective lower bound still at 0.1 which is where Bank Rate is at present”. And, “we are not about to use negative rates imminently.”
Negatives rates are “in the toolbox” and BoE is just “duty bound” to explore in more details the operational considerations. Engagement with banks on negative rates will “take time”.
On the economy, he said that the central cases sees GDP “recovering steadily” but there are “real uncertainties and risks”, from the pandemic, Brexit and the US election. BoE is “ready to act further if needed”.