Negative Rates ‘Much Ado About Nothing’ for Currencies: HSBC’s Bloom

The video discusses the potential impact of sterling and euro dynamics, particularly in light of the UK's position on the next generation euro fund. It explores the possibility of the UK leaving the EU with or without a deal and the implications of the Bank of England considering negative interest rates. The discussion highlights the effects of negative rates on currency volatility and the limited actions central banks can take once rates are negative.

What is the UK's stance on contributing to the next generation fund?

• The UK is reluctant to contribute.

• The UK is undecided about contributing.

• The UK is eager to contribute.

• The UK has already contributed.

What is the potential impact of negative interest rates on the pound?

• No impact

• Slightly positive impact

• Very negative impact

• Positive impact

How likely is it that the Bank of England will implement negative interest rates?

• Impossible

• Very likely

• Not expected but possible

• Already implemented

What happens to currency volatility once negative interest rates are implemented?

• Volatility becomes unpredictable

• Volatility decreases

• Volatility remains the same

• Volatility increases significantly

How long did it take the European Central Bank to cut rates from zero to minus half?

• One year

• Five years

• Two years

• Ten years