10/29, 3:40 PM (Source: TeleTrader)
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IMF: Negative rates could be used in UK if needed

There is space to use negative interest rates in the United Kingdom if needed, the International Monetary Fund (IMF) said in the conclusions of its official staff visit to the country. The IMF added that fiscal policy actions need to continue so that businesses and jobs remain protected amid the coronavirus pandemic. However, an "additional fiscal policy push" will be needed when the pandemic subsides, the organization added.

Additionally, the IMF said that fiscal consolidation needs to begin as soon as the recovery starts and that monetary policy must remain accommodative as inflation will "likely stay subdued."

Finally, the IMF called on the UK and the European Union to reach a trade deal before the end of the UK's transition period to avoid a no-deal Brexit.

Breaking the News / VP