MNI BRIEF: BOE's Vlieghe-Negative Rates Should Boost Economy

Further downside risks to the UK's economy are starting to materialise, skewing the monetary policy outlook to additional easing, Bank of England External Monetary Policy Committee Member Gertjan Vlieghe said on Tuesday, adding that negative rates were likely to have a positive effect while more quantitative easing would probably be less potent a tool than earlier in the year.

Asset purchases "remain an available policy tool", but with interest rates expectations already very low they were likely to be less potent than in March when the MPC re-launched QE, he said in a speech. The evidence suggested negative rates were beneficial and the risk that they would be counterproductive in the UK was low, he added.