Bankd of England Quarterly Bulletin - 2017 Q1

Bank of England published its quarterly bulletin for the first quarter of 2017.

Key notes

• Negative interest rates were generally viewed as less effective at stimulating demand
• Many speakers discussed the scope for further QE purchases to provide additional stimulus
• A range of other potential macroeconomic policy measures were also discussed, including a change in the inflation target
• That would allow for more cuts in interest rates before any "lower bound" became binding
• Higher inflation, however, would carry its own costs, potentially including greater uncertaintyfor households
• Most speakers warned of potential side-effects of a long period low interest rates