Comments by BOE policymaker, Silvana Tenreyro
- We will be in a world of low interest rates for a long time
- It is important to engage with the review of negative rates
The mixed BOE communication on negative rates continues, but we have learned that this is possibly a case of a divide in opinion. Tenreryo had previously said that evidence of negative rates was encouraging, so this is still up along that same alley.
As for the headline remark on negative rates working well in Europe, that is up for debate.
Anyway, the pound continues to stay underpinned on the session with cable near 1.3300 and EUR/GBP still testing its September lows around 0.8866-72.
