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MNI BRIEF: BOE Vlieghe: Sees Negative Rate On Covid Resurgence

LONDON (MNI)

Negative rates 'would become an important tool' for the Bank of England if a variant of the Covid-19 virus is able to bypass vaccines, hitting economic activity, Monetary Policy Committee Gertjan Vlieghe said Thursday.

Whether further quantitative easing would be deployed as well would depend entirely on how orderly the financial market response to the news was, he said. Asked at a Bath University online event how low negative rates could go, the policymaker said that the evidence from elsewhere showed that when going as far as 75 basis points below zero "everything seems to be OK."

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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