Speculation has been mounting that the Bank of England could take rates into negative territory as early as next month
The Bank of England is not poised to cut interest rates below zero, according to its chief economist Andy Haldane.
Speculation has been mounting that the central bank could take rates into negative territory as early as next month in a bid to prop up the economy as it reels from the Covid-19 pandemic.
The Bank has already cut rates to an all-time low of 0.1 per cent – hammering savers but making mortgages and other loans cheaper.
But Haldane played down the prospect of further cuts to interest rates. ‘We are doing work to ensure that that tool is in the toolbox,’ he said.
‘That is not remotely the same as saying that we are about to deploy that tool. That will depend on the balance of costs and benefits.’
This post first appeared on Dailymail.co.uk
