BOE Andrew Bailey on the wires
BOE’s Bailey is speaking on a virtual webinar and says:
- We think risks are all on the downside.
- On negative rates don’t know precisely how quickly they could be implemented
- answer depends on responses from banks to BOE consultation
- we are not thinking about them in terms of the policy decision now
- we are asking banks if negative rates would be sensible to have in toolbox
The GBPUSD moved up to test the 50% midpoint of the move down from the September 1 high at 1.30777. The high price reached 1.3082 before rotating back to the downside. The pair currently trades at 1.30624. It would take a move back above the 50% retracement (and stay above) to give buyers more confidence.