Further remarks by Saunders
- Scope to cut interest rates is limited now
- If we wanted to lower yield curve, lower bank rate would be the best tool
- BOE has a range of policy tools
The pushback on negative rates by the BOE has been clear since the last meeting. As things stand, it is more of an insurance policy as they have the flexibility and capacity to adopt a more wait-and-see approach over the next few months at least.
