FILE PHOTO: A cyclist is seen near the Bank of England as the spread of the coronavirus disease continues, London, Britain, April 14, 2020. REUTERS/John Sibley/File Photo
“While we don’t think that negative interest rates are a near-term possibility as the central bank has a few more bullets left, Haldane’s comments opens the door to that possibility,” said Lee Hardman, an FX strategist at MUFG in London. “My personal view, which comes from the reading of the European experiences, is that negative rates have had a positive effect in the sense of having a fairly powerful transmission to real activity,” she told a London School of Economics webinar.
Futures contracts from December 2020 have dipped into negative territory while contracts maturing in June 2021 are pricing in as much as minus 0.03% in benchmark policy rates.Two-year government bond yields GB2YT=RR, often viewed as an indicator of where official rates are headed, fell back into negative territory and is within striking distance of a record low of minus 0.05% hit last week.
Just a matter of time before the US does the same.
What does 'sub zero rate club' mean? Please someone explain as am not a native english speaker.
Watch out for Software Glitches in that negative interest area.