MNI BRIEF: BOE Haldane: Negative Rate Conditions Not Met

Bank of England Chief Economist downplayed the likelihood of the Monetary Policy Committee bringing in negative interest rates any time soon, saying that the conditions to make them worthwhile were not satisfied and that the Bank had months of preparatory work ahead.

Haldane said that the necessary conditions for introducing negative rates were if the MPC judged that more stimulus was necessary, that the balance of costs and benefits from using them was positive and whether the cost/benefit analysis came out in favour of them over alternative policy tools.

He also said that the operational work on negative rates "is likely to take a number of months." MNI reported Tuesday that the questions for consultation with the financial sector on negative rates have not yet been drawn up .

In other remarks Haldane said that the economic risks at present were large and skewed to the downside and he worried that the good economic news was being drowned out by fear.