Jonathan Haskel, a member of the Monetary Policy Committee (MPC) of the Bank of England (BoE), said on Monday that they keep an “absolutely open mind” on the suitability of negative rates, as reported by Reuters.
“Negative rates may hit bank margins but that could be offset by a positive effect for the economy,” Haskel added. “Relative to expectations, August ONS data was uniformly below forecasts. We need to look more closely at why GDP data disappointed.”
Market reaction
These comments don’t seem to be hurting the British pound. As of writing, the GBP/USD pair was trading at 1.3068, gaining 0.17% on a daily basis.
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