BoE Governor warns lenders of challenges of negative interest rates – Sunday Times


© Reuters. Bank of England Governor Andrew Bailey poses for a photograph on the first day of his new role at the Central Bank in London

(Reuters) – Bank of England (BoE) Governor Andrew Bailey has written a letter to lenders warning them of the challenges of negative interest rates, the Sunday Times newspaper reported.

The letter said that negative rates were “one of the potential tools under active review” if the monetary policy committee decided that “more stimulus” was needed to hit the BoE’s 2% inflation target, the newspaper reported https:// It didn’t disclose how it gained knowledge of the letter’s content.

The report said Bailey held a meeting with heads of banks at the end of June and that negative rates were discussed in that meeting in which the governor said “every tool they have is on the table”.

On negative interest rates, Bailey has previously said that they were an option for the BoE, but that the issue was complex and taking borrowing costs below zero was not in any way imminent.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

READ  Europe must be ready for fiscal stimulus over virus - French minister

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here