The pound has begun to rise against the euro and the dollar, following statements concerning the feasibility of negative interest rates, which have moderated some expectations for interest rates falling below zero in Britain, made by Andrew Bailey, Governor of the Bank of England.
Bailey stated today that there are many issues regarding the reduction of interest rates below zero and that such a move could harm banks. The pound started its ascent, already benefiting from improved risk appetite, rising 0.7% to $1.3620, and increasing 0.5% against the European currency to 89.49 pence to the euro.
