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Commenting on the possible implementation of negative interest rates, “the issue is whether or not it would be effective,” Bank of England (BoE) Deputy Governor Ben Broadbent said on Friday, as reported by Reuters.

Key takeaways

“It’s probable that mitigating effects could be stronger when bank balance sheets are under pressure.”

“We will be getting answers back from banks on negative rates soon.”

“Question of whether we would cut rates below zero will rest on economic questions.”

“There are complex issues involved in negative rates.”

Market reaction

The GBP/USD pair showed no immediate reaction to these remarks and was last seen posting small daily losses at 1.3120.