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Bank of England (BoE) Governor Andrew Bailey reiterated on Monday that risks are all on the downside, as reported by Reuters. Commenting on negative rates, Bailey noted that they don’t know how quickly they could be implemented.

Additional comments on negative rates

“Answer depends on responses from banks to BoE consultation.”

“We are not thinking about them in terms of a policy decision now.”

“We are asking if they would be sensible to have them in toolbox.”

“We are not near addressing whether we should use negative rates.”

Market reaction

The GBP/USD pair edged slightly higher on these comments and was last seen gaining 0.17% on a daily basis.