Economics
Bailey Plays Down Odds of BOE Negative Rates on Virus Risks
- Governor says work on negative rates will take some time
- Recovery is uneven, unemployment is higher than reported
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The Bank of England isn’t close to negative interest rates despite the resurgence of the coronavirus reinforcing downside risks to the U.K. economy, according to Governor Andrew Bailey.
While the bank has “looked hard” at rate cuts and negative rates are in the toolbox, planned technical work on the policy is to examine whether it can be implemented rather than a signal it is coming, he said.