BoE’s Haldane: None of the Conditions for Negative Rates Has Been Satisfied

The Bank of England’s chief economist, Andy Haldane crossed the wires in the last hour and ruled out the possibility of negative rates in the short-term. Haldane said that conditions to negative interest have not been met yet.

“None of the conditions for negative rates has been satisfied.
Work on negative rates is likely to take months.
The economy has recovered faster than anyone expected.
Any decision on negative rates would depend on cost-benefit analysis.
BoE is committed to keeping borrowing costs at extraordinarily low levels.
Positive news has received less attention than it deserves.
Overly pessimistic narrative risks becoming self-fulfilling.”