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The Bank of England’s chief economist, Andy Haldane crossed the wires in the last hour and downplayed the possibility of negative rates in the short-term.

Key quotes:

  • None of the conditions for negative rates has been satisfied.
  • Work on negative rates is likely to take months.
  • Any decision on negative rates would depend on cost-benefit analysis.
  • BoE is committed to keeping borrowing costs at extraordinarily low levels.
  • The economy has recovered faster than anyone expected.
  • Positive news has received less attention than it deserves.
  • Overly pessimistic narrative risks becoming self-fulfilling.

The comments did little to impress the GBP bulls, with the GBP/USD pair hovering near the lower end of its daily trading range, just above the 1.2800 round-figure mark.