BoE’s Vlieghe: Any rate cut must be more than 10 bps to work

Negative rates could help the UK complete the economic recovery, Bank of England (BoE) policymaker Gertjan Vlieghe said on Friday, per Reuters.

Vlieghe further argued that any rate cut must be more than 10 basis points to work and added that a mixture of quantitative easing and rate cut would be best if markets remain stable.

Market reaction

These comments don’t seem to be having a significant impact on market sentiment. As of writing, the UK’s FTSE 100 Index was virtually unchanged at 6,550. Meanwhile, the GBP/USD pair edged slightly lower and was last seen losing 0.48% on the day at 1.3518.