Mr Vlieghe stated that the bank may need to slash interest rates almost all the way to down to zero in the event of a no-deal Brexit. He also added that it is not clear how long it would then take interest rates to rise once again. The BoE official stated: “On balance I think it is more likely that I would move to cut Bank Rate towards the effective lower bound of close to 0 per cent in the event of a no-deal scenario.
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