Further comments by Ramsden
- We are using tried and test policies such as QE
- Important to stress that negative rates are now in the toolbox
- Financial structure is a key conditionality for negative rates
- Believes that BOE can support the transition by keeping rates low
The BOE published a box on negative rates in its policy report yesterday - the first time it has done so - and that is inviting market participants to get used to the idea that policymakers are almost likely to pursue such a measure if the economic recovery falters.
Ramsden's remarks reaffirms their current stance that now is not the time to be pursuing such measures but it is part of the consideration moving forward.