Bailey assures the market that the BOE is just as dovish as the Fed
As mentioned a few weeks back, Powell and the Fed basically lit a fire in the race to the bottom after specifically marking out their "average inflation targeting" strategy.
We have already seen other central banks respond to that and the BOE is the latest here to reaffirm that they are also on the same page as everyone else.
Meanwhile, Bailey says that last week's BOE statement did not imply that the central bank would use negative rates; instead it just says that they need to know how to implement negative rates and there isn't a need to reach more into it.
As much as he does want to keep his cards close to the chest, we all know that this option seems like an inevitability for the BOE given how things are developing - for now at least.
