msn.com 18 Sep, 2020 01:30 am

UPDATE 4-Sterling regains lost ground after BoE negative rate talk

BRITAIN-STERLING/ (UPDATE 4):UPDATE 4-Sterling regains lost ground after BoE negative rate talk

Highlighting risks relating to rising COVID-19 cases, the unwinding of jobs protection schemes, and Brexit, the BoE said it was ready to take further action.The BoE said that their base case is an "immediate, orderly move to a comprehensive free trade agreement with the European Union on 1 January 2021".rs/2hwV9Hv (Updates prices) LONDON, Sept 17 (Reuters) - The pound fell sharply on Thursday after the Bank of England said it had briefed monetary policymakers on how a negative interest rate could be brought in, before recovering most of the lost ground in later trading.The bank also said that policymakers had been briefed on how a negative rate could be implemented "should the outlook for inflation and output warrant it at some point during this period of low equilibrium rates.

The Bank of England kept its main stimulus programmes on hold, as expected, and said that Britain's economy had performed better than expected.Brexit talks were thrown into disarray by Prime Minister Boris Johnson proposing legislation that would break international law by breaching parts of the Withdrawal Agreement relating to Northern Ireland.

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