Bank of England looking more urgently at negative rates, riskier assets: Haldane

Bank of England looking more urgently at negative rates, riskier assets: Haldane

From reuters.com

The Bank of England is looking more urgently at options such as negative interest rates and buying riskier assets to prop up the country’s economy as it slides into a deep coronavirus slump, the BoE’s chief economist was quoted as saying. The Telegraph newspaper said the economist, Andy Haldane, refused to rule out the possibility of taking interest rates below zero and buying lower-quality financial assets under the central bank’s bond-buying programme. “The economy is weaker than a year ago and we are now at the effective lower bound, so in that sense it’s something we’ll need to look at – are looking ... (full story)

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kuroro001

May 17, 2020 12:42pm

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I'm glad all of you are bearish, it conforts me to buy

fxsport

May 17, 2020 7:29am

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Quoting AnniLi

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All countries need to consider negative rates. It's real rates which matter.

Ignored

Switzerland has had negative rates for some time have they not?

I also believe that Japan has negative rates as well don't they?

The purpose of negative rates is to pump liquidity into the system but from Economic 101 it should produce hyper-inflation as a result correct?

barkie

May 17, 2020 7:52am

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"Riskier" keyword here, going all-in on a night out at the roulette table

Trader#59F4

May 16, 2020 10:06pm

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Companies like Virgin and British Airways are cutting half of their workforce. This is replicated across the economy. Well paid and low paid jobs are all vanishing, and are not being replaced. There is a massive lack of real INCOME, for real PEOPLE. How exactly is the BOE's negative rates and buying of junk bonds going to replace this lost INCOME and JOBS? This is monetarism gone absolutely bonkers! To a monetarist banker with a hammer, everything looks like a nail

AnniLi

May 17, 2020 5:52am

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If you can keep your head while all around.......

A lesson soon forgotten is that crises of all sorts happen all the time. Media feel (and have a vested interest) that the best message is doom and gloom such as these posts and 'climate change' alarmist.

Financial traders worth their salt see opportunities in panics. If its profits you seek, seek opportunities in a world beyond the crisis.

g0ds0n

May 17, 2020 4:58am

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Soon, $1 dollar will = to £1.

fxsport

May 17, 2020 7:33am

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Quoting AnniLi

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Financial traders worth their salt see opportunities in panics. If its profits you seek, seek opportunities in a world beyond the crisis.

Ignored

Anni as an experienced member of the community would you mind sharing some of your thoughts on a world beyond this crisis...for example what time frame are you looking at - weekly, monthly, yearly (not talking about trading but when this crisis "should" resolve and return to "normal")

hkg_paul

May 17, 2020 12:42pm

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Quoting Guest

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Companies like Virgin and British Airways are cutting half of their workforce. This is replicated across the economy. Well paid and low paid jobs are all vanishing, and are not being replaced. There is a massive lack of real INCOME, for real PEOPLE. How exactly is the BOE's negative rates and buying of junk bonds going to replace this lost INCOME and JOBS? This is monetarism gone absolutely bonkers! To a monetarist banker with a hammer, everything looks like a nail

Ignored

wise ... however during the Covid 19 , which country is shaping better. Do you think there is only British airway airline on the earth ... Or do you think Lufthansa is flying everyweher.

Steamroller

May 17, 2020 3:41am

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They should have done more to normalise interest rates back in 2014 and focus on structural issues such as zombie companies and stagnating productivity. Instead they took the easy route by excluding house prices from inflation indicators (the majority of an households expense) to "keep inflation low" in order to continue justifying keeping rates at the lower bound. This helped to reduce pension liabilities of the corporate sector by inflating assets and giving people a phantom wealth effect. Now we are in a genuine emergency we have to talk about the hocus pocus of negative rates rather than just lowering rates. This can't end well - basically the end of market forces and efficient capital allocation.

RANT OVER!!!