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Bank of England (BOE) Governor Andrew Bailey is testifying before the Treasury Committee on the economic impact of the coronavirus outbreak.

Key quotes on negative interest rates

“We do not rule things out on principle.”

“MPC has a history of keeping under review the lower bound.”

“We are very keen to observe how economy has responded to cuts we have made.”

“We are looking carefully at the experience of other central banks.”

“Structure of financial systems in countries with negative rates is important.”

“Communication would be absolutely critical.”

“In countries that have used them, it’s quite a nuanced policy tool.”

“We will review purchase of risky assets.”

“We may have to act rapidly, having tools under review to do that is important.”

Market reaction

The GBP/USD pair edged lower on these comments and was last seen trading at 1.2270, where it was still up 0.15% on the day.