Backing sub-zero interest rate
A Bank of England policymaker has predicted a spike in unemployment that could push joblessness over its 7.5% target, and backed the possibility that negative interest rates would stimulate the economy.
Gertjan Vlieghe cited “growing empirical literature” suggesting sub-zero interest rates had not been counterproductive in other countries.
China reported that its economy expanded by 4.9% in the third quarter, compared with a year earlier, – just shy of its pre-pandemic rate. It has just about completed the upward leg of a V-shaped rebound.