BOE Officials Signal Openness to Negative Rates as Stimulus Tool

Article summary

Two Bank of England policy makers indicated they were open to using negative interest rates if the U.K. needs more monetary stimulus at some point in the future. The BOE has never cut interest rates below zero before, but is reviewing that option to see if it’s possible. Monetary Policy Committee member Michael Saunders said Friday there’s some room to cut rates as part of a range of tools. His colleague Silvana Tenreyro said the evidence from elsewhere is “supportive” of their use. […] The central bank has already cut interest rates to 0.1% and has relied on asset purchases to keep borrowing costs low.

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