Negative interest rates
- Floor for UK interest rates is close to zero
- Negative interest rates lead to weaker banking system
- Tool for policy loosening once rate are at the lower bound is further asset purchases
- If there was no Brexit uncertainty, UK economy would be in its best position for several decades
GBP retracing a little on these comments, but expect sellers on retracements.
edit: Saunders went on to say: below potential growth is enough to justify a rate cut, do not need a further slowdown.
Saunders is a hawk, so his dovish comments have more weight about cuts
