Bank of England (BoE) policymaker Silvana Tenreyro said on Monday that it’s possible more stimulus, at an appropriate pace, will be needed, as reported by Reuters. Additional takeaways “BoE work on the feasibility of negative rates still in progress, I have nothing new to add to this.” “If that is the case, having negative rates in our toolbox will, in my view, be important.” “My decisions on the amount of policy stimulus needed and the right tool to deliver it will depend on the outlook at the time of voting.” “All else equal, looser monetary policy can help the economy recover faster, bringing inflation back to target.” “The financial-market channels of monetary policy transmission have worked effectively under negative rates in other countries.” “Experiences of negative rates in other countries suggests that bank-lending channels of monetary policy transmission have also been effective at boosting lending and activity.” “We have a very large degree of spare capacity, there is no short term trade-off between our objectives.” “Little evidence to suggest that many aspects of policy would operate differently from usual.” “It is possible that the current structure of the UK banking system could lead to a less positive impact on bank profitability.” “Resurgence in the virus likely to mean significantly more job losses still to come.” “No clear evidence that negative rates have reduced bank profits overall, and a number of studies find positive impacts, once you take into account the boost to the economy.” “Negative bank rate does not, therefore, imply that rates facing households and businesses will necessarily turn negative.” “Speed of any future rebound likely limited by slow release of savings built up over lockdown.” “For Q4 2020 and Q1 2021, we will see headline-grabbing negative numbers, big positive ones when the economy can reopen.” “Quantitative easing is important in the event of market dysfunction, for example, but also that its power mainly lies in helping offset the disruption, rather than providing net additional stimulus to the economy.” Market reaction The GBP/USD pair edged slightly higher from daily lows after these comments and was last seen losing 0.6% on the day at 1.3480. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Breaking: Bitcoin collapses under $31,000, Ethereum below $1,000 FX Street 11 months Bank of England (BoE) policymaker Silvana Tenreyro said on Monday that it's possible more stimulus, at an appropriate pace, will be needed, as reported by Reuters. Additional takeaways "BoE work on the feasibility of negative rates still in progress, I have nothing new to add to this." "If that is the case, having negative rates in our toolbox will, in my view, be important." "My decisions on the amount of policy stimulus needed and the right tool to deliver it will depend on the outlook at the time of voting." "All else equal, looser monetary policy can help the economy recover faster,… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.