Further comments by Saunders
- BOE did not discuss negative rates in August meeting
- Review of negative rates is not finished
- Review will look at indirect effects on banks, lending
An interesting choice of word there by Saunders i.e. 'theologically' in the sense that his central bank beliefs does not exclude pursuing negative rates as an option at least.
I reckon even if they had strong reasons not to go there in the past, that may have changed considering the economic circumstances over the past six months.
Once again, this just adds more to the narrative that the BOE is almost likely to pursue this option down the road - especially once the economy shows more signs of cracking.
