While the British Pound has cut its gains by now, it is still trading over the beginning level at writing.
Bank of England Deputy Governor Dave Ramsden stated that he believes the BoE does not need to cut interest rates into the negative territory. He added that he sees the effective lower bound still at 0.1, which is where Bank Rate is present.
He revealed that negative rates are “in the toolbox,” and the bank “was duty-bound” to examine them as an option to prop up the economy. Ramsden also said that it would take time to join with banks on the issue of negative rates. In any circumstance, the central bank is not intending to implement negative interest rates soon.
They said that they are not about to use them imminently. It will take time to do that work.
Meantime, BoE policymaker Silvana Tenreyro was also discussing negative rates on the weekend. She shared that the confirmation from the economies where they are already implemented “has been exhilarating.”
Trade Negotiations Among the UK and the EU Prevail as a Hot Topic
While markets were beginning to settle for Britain’s potential exit from the EU without a deal, both British and EU officials’ latest remarks were optimistic, giving hope that an agreement is still possible.
GBP/USD rose from 1.2762 to 1.2834 as of 19:28 GMT yesterday, reaching the high of 1.2930 intraday. EUR/GBP started at 0.9099, fell to the session minimum of 0.9025 intraday, but has bounced to 0.9090. GBP/JPY traded at 135.38 after starting at 134.62 and growing to a daily high of 136.22.