Catherine Mann, the newest member of the Bank of England’s Monetary Policy Committee, said Monday that they don’t know enough about how the financial volatility of exiting the quantitative easing program could affect the economy, according to Reuters.
“It’s hard to say never about negative interest rates.”
“Research shows that negative rates are often implemented too late to help economies.”
“It is very difficult to say that negative interest rates, or higher QE, would be the correct policy now.”
“The normalization of monetary policy in the United States is likely to be earlier than in other advanced economies, including the United Kingdom.”
“The Bank of England will have to be aware of the secondary effects of the tightening of American policy.”
“Normalizing US policy could make it less urgent for the Bank of England to also toughen policy.”
“Additional COVID mutations have raised further concern.”
The GBP/USD remains on the defensive following these comments and was last seen losing 0.7% on the day at 1.3675.