“I continue to see the current stance of policy as appropriate, given the current degree of uncertainty around the health and economic outlook,” Bank of England (BoE) Deputy Governor Dave Ramsden said on Wednesday, as reported by Reuters.
Additional takeaways
“QE is a policy tool that has worked.”
“It remains appropriate for policy to lean strongly against downside risks to the outlook.”
“The very welcome progress with the vaccination programme has reduced the number of uncertainties and risks but they have by no means gone away entirely.”
“For me, QE is the marginal monetary policy tool at present.”
“If needed the boe could re-evaluate some of its self-imposed constraints on gilt purchases to create more headroom.”
“Our work on negative rates is contingency planning.”
Market reaction
The GBP/USD pair edged slightly lower following these remarks and was last seen losing 0.45% on a daily basis at 1.3840.
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