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Can't read into forecasts using market rates how effective negative rates are

BOE
  • Q: Market prices in negative rates and GDP forecasts are higher than constant rates, does this mean you are implying negative rates work?
  • A: We use a simple estimation and because it's such a small number....before cutting out (from Bailey).
  • A: From Dave Ramsden: Shouldn't be taken as any signal of how much negative rates work, just use a simple model (implying that the model uses the same boost from a rate cut for negative rates than if rates were positive)

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