BOE’s Bailey Says Now Is the Time to Review How Low Rates Can Go

The transcript discusses the contemplation of negative interest rates and the purchase of riskier assets. It highlights the importance of not ruling out financial tools and the need to review them periodically. The Bank of England is keen on observing the economic response to interest rate cuts and is studying the experiences of other central banks with negative rates. The transcript emphasizes the importance of context, financial system structure, and communication in implementing negative rates. It also mentions the review of financial tools like credit easing and the commercial paper facility.

What are the potential implications of implementing negative interest rates?

How does the structure of a country's financial system affect the use of negative interest rates?

What measures are being observed to counteract the weakness of pass-through in monetary policy?

Why is communication critical when implementing negative interest rates?

What is the significance of reviewing the effectiveness of monetary policy tools?