Further comments by Bailey
- We have looked very hard at scope to cut rates further
- That includes negative interest rates
- Concluded that negative rates should be in the toolbox
- We do not intend to take any action to tighten policy until there is very clear evidence of significant progress to achieve 2% inflation target sustainably
The comment on cutting rates goes in tandem with steps by the government to address the latest virus developments in the UK, and so the odds are certainly increasing given the current predicament - which isn't really helping the pound.
Cable now down to fresh lows of 1.2713 and looks to be challenging its key daily moving averages @ 1.2722-25 currently. Watch out for that over the next few hours.