BoE's Bailey: A lot of work to do before we can cut interest rates below zero

"We have a lot of very practical work to do before we would be able to cut interest rates below zero," Bank of England (BoE) Governor Andrew Bailey said on Tuesday and added that he cannot put a date on it, as reported by Reuters.

Additional takeaways

"Would need to see quite a strong downturn to get a negative figure for Q4 GDP growth."

"If we cut rates below zero, would need to explain it very carefully to the public."

"Tiered interest rates would add operational complexity."

"I do not expect to see a sharp downward move in house prices when stamp duty land tax exemption expires but would not be surprised to see transactions fall a bit."

Market reaction

The GBP/USD pair struggles to make a decisive move in either direction after these comments and was last seen gaining 0.18% on the day at 1.2855.