Economics
BOE Likely to Embrace Negative Interest Without Using Them
- Central bank is due to detail results of its study into policy
- Keeping option open may help restrain market borrowing costs
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The Bank of England is preparing to take a significant step into the debate on whether negative interest rates should be used to stimulate the coronavirus-stricken U.K. economy.
The central bank this week is due to publish the results of 160 detailed responses to a consultation about how borrowing costs could be pushed below zero for the first time since it was founded in 1694. The controversial policy, already tried in the European Union and Japan, turns banking on its head by charging for deposits while paying those who borrow money.