Now that's a first
- UK must deal with Brexit, whether deal or no-deal
- Any rate cut must be more than 10 bps to work
- Risk that negative rates are counterproductive is low
- Mix of QE and rate would be best if markets are stable
This may just be Vlieghe's own opinion but the hard selling here is hard to ignore. The BOE is primed to ease policy further, regardless of a Brexit deal or not, some time next year and negative rates is certainly looking more and more imminent - especially when policymakers continue to put out remarks like these.
