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#London Markets: Pound rises as Bank of England says there won’t be negative interest rates for at least 6 months

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“#London Markets: Pound rises as Bank of England says there won’t be negative interest rates for at least 6 months”

The pound rose on Thursday after the Bank of England tried to be as cautious as possible in saying it was time to start preparations for adding negative interest rates to its tool kit.

The pound
GBPUSD,
-0.02%
moved to $1.3632 from $1.3571 after the unanimous decision, which also included a call to keep interest rates at 0.1% and maintain its asset-purchase plan.

“While the Committee was clear that it did not wish to send any signal that it intended to set a negative Bank Rate at some point in the future, on balance, it concluded overall that it would be appropriate to start the preparations to provide the capability to do so if necessary in the future,” the central bank said.

The central bank also said that it would take at least six months for banks to be prepared.

Steve Goldstein

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