Economics
BOE’s Vlieghe Gives Strongest Backing Yet for Negative Rates
- Rate-setter said there’s little QE can do to add stimulus
- Prefers sub-zero rates for dealing with labour market weakness
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Bank of England policy maker Gertjan Vlieghe gave his strongest backing yet for the use of negative interest rates if the U.K. needs more stimulus, highlighting a growing schism between officials on the institution’s toolkit.
Two days after Deputy Governor Dave Ramsden said the BOE had scope for more quantitative easing to support the economy -- describing it as a “tried and tested tool” -- his colleague on the Monetary Policy Committee contended that there’s “little QE can do to add further stimulus to the economy.”