Additional remarks from BOE Governor Andrew Bailey
- Negative rates are not something we are considering
- But it’s always wise not to exclude anything forever
- It would take an extensive communication exercise to look for negative rates
- It’s a very big step, creating problems for banks
- See no evidence that there is going to be a rapid increase in inflation
The cable is now trading just below the 1,2200 mark, around 1.2195, with the dollar remaining slightly firmer during the session after Trump’s previous remark on a stronger currency.