Comments by BOE policymaker Gertjan Vlieghe
- Structural forces unrelated to monetary policy are likely to keep rates low
- BOE unlikely to be able to cut rates as it did in the previous downturn
- BOE analysis rules out taking rates into negative territory
- Does not believe that a recession is overdue
He’s touching quite a bit on monetary policy here as he also says that the central bank has “less firepower” this time around than in previous economic downturns. Well, he’s not exactly wrong to be fair.
If not for Brexit uncertainty, the BOE probably would’ve hiked rates another one to two times at least and build up enough of a buffer to counteract the next possible recession.