BoE’s Tenreyro: Evidence is that negative rates have helped economies

With coronavirus vaccines in sight, the policy support is more important than ever, Bank of England (BoE) policymaker Silvana Tenreyro said on Friday, per Reuters.

Tenreyro further argued that vaccines show that the COVID shock should be temporary. Commenting on negative rates, Tenreyro noted the evidence suggests that they have helped economies. “Of course, there might be idiosyncrasies we will have to address and this would be part of the discussion before we ever moved to negative rates,” she added.

Market reaction

The GBP/USD pair showed no immediate reaction to these comments and was last seen gaining 0.28% on the day at 1.3489.