Economics
BOE’s Vlieghe Says May Need Subzero Rates for Full Recovery
- Job losses, uncertainty may mean economy needs another boost
- Brexit matters for businesses “whether there is a deal or not”
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The Bank of England should be prepared to add monetary stimulus including negative interest rates to complete the economic recovery from the pandemic, according to policy maker Gertjan Vlieghe.
While vaccines may mean current measures are enough to get through the health crisis, the hit to jobs and investment -- combined with the need to deal with Brexit “whether there is a deal or not” -- could mean the recovery peters out sooner than desired, the Monetary Policy Committee member said in a Bloomberg interview on Friday.