Comments by BOE governor, Andrew Bailey
- The market puts certain probability on negative rates, we don't read into that
- QE target not related to government funding needs
- UK not in the middle of a double-dip recession
- Inflation risks are broadly balanced
- We do not make predictions about which tools we are going to use
- For now, we are using forward guidance as well as QE
Bailey adds that they did not make any mention of negative rates today because "we have set out the work we are doing on them". In other words, he is trying to say it is still a work in progress kind of situation.
Well, as long as they are still trying to be stubborn in communicating the message to the market, it just means that it still isn't on the table yet.
