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Low for Much, Much Longer: Postponing Lift-Off from the Lower Bound

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Macroeconomic Policy after the Crash

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Abstract

The MPC stopped cutting interest rates and started purchasing assets in Spring 2009. At that time, market participants anticipated that that the Committee’s stay at the effective lower bound would be relatively short-lived. By May 2009, market prices implied rates would start to rise in 2010. However, Bank Rate would remain rooted to the lower bound for years to come.

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Authors and Affiliations

  1. BNP Paribas Investment Partners, Dartford, UK

    Richard Barwell

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  1. Richard Barwell
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Barwell, R. (2016). Low for Much, Much Longer: Postponing Lift-Off from the Lower Bound. In: Macroeconomic Policy after the Crash . Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-51592-6_8

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  • DOI: https://doi.org/10.1057/978-1-137-51592-6_8

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  • Publisher Name: Palgrave Macmillan, London

  • Print ISBN: 978-1-137-51591-9

  • Online ISBN: 978-1-137-51592-6

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