BOE’s Ramsden: It is reasonable to have an open mind on negative rates

The Bank of England (BOE) Governor Dave Ramsden told Reuters on Friday, it is reasonable to have an open mind on negative rates.

BOE WAS VERY CLEAR IN MAY STATEMENT THERE ARE DOWNSIDE RISKS TO POST-COVID RECOVERY

"LITERAL READ" OF LATEST INDICATORS SUGGESTS Q2 GDP FALL MIGHT BE SLIGHTLY LESS THAN BOE'S MAY SCENARIO, BUT STILL VERY EARLY DAYS

MARKETS ARE IN A BETTER PLACE THAN THEY WERE, BUT STILL FRAGILE

IT IS QUITE POSSIBLE BOE WILL DO MORE QE AT JUNE MEETING OR SUBSEQUENTLY

THERE IS PLENTY OF HEADROOM FOR MORE CONVENTIONAL QE GILT PURCHASES

IT IS REASONABLE TO HAVE AN OPEN MIND ON NEGATIVE RATES, BUT IT IS A VERY COMPLEX ISSUE

  22-May-2020 12:30:00 - BOE'S RAMSDEN SAYS BOE SCENARIO ONLY LOOKED AT SCARRING FROM REDUCED INVESTMENT, BUT STRANDED CAPITAL AND LABOUR MARKET HYSTERESIS ARE RISKS TOO

  22-May-2020 12:30:00 - BOE'S RAMSDEN SAYS BOE COMMENTS ON NEGATIVE RATES NOT MAIN DRIVER OF NEGATIVE GILT YIELDS

  22-May-2020 12:30:00 - BOE'S RAMSDEN SAYS HE DOES NOT SEE A CASE FOR BOE TO BUY INDEX-LINKED GILTS OR GILTS WITH MATURITIES UNDER 3 YEARS

  22-May-2020 12:30:00 - BOE'S RAMSDEN SAYS BUYING RISKIER ASSETS AS PART OF QE WOULD NEED A FINANCE MINISTRY INDEMNITY