The Governor of the Bank of England believes that reducing interest rates to below zero requires comprehensive communication
Bank of England Governor Bailey said that if interest rates were to fall below zero, extensive communication was needed because it was not a normal rate cut and reiterated that the central bank has long believed that negative interest rates will cause problems for banks. Therefore, the implementation of negative interest rates has not been considered, but this possibility has not been completely ruled out. The Bank of England has no need to implement negative interest rates, which has eased the downward pressure on the pound.
IEA says crude oil demand is beginning to show signs of recovery
The International Energy Agency (IEA) said that in response to the easing of confinement measures in various places, the forecast of the decline in global crude oil daily demand this year was reduced from the estimated 9.3 million barrels last month to 8.6 million barrels. It also pointed out that global economic activity is beginning to recover gradually but fragilely, and the prospects are still very uncertain, especially whether local governments can relax confinement measures without triggering an outbreak. As for the oil market conditions, the IEA said that crude oil demand had initial signs of recovery, but it is still too early to conclude that supply and demand will return to equilibrium at this stage.
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