BBC: Bank of England deputy governor Paul Tucker has said negative interest rates should be considered.
The Bank rate has been at a record low of 0.5% for almost four years.
A negative interest rate would mean the central bank charges banks to hold their money and could encourage them to lend out more of their funds.
Speaking to MPs on the Treasury Committee, Mr Tucker said: "This would be an extraordinary thing to do and it needs to be thought through carefully."
He said it was an idea he had raised as one of the possible alternative ideas to boost the economy.
"We will be thinking about whether there are any constraints on setting negative interest rates," Mr Tucker told MPs.
With interest rates at a record low, there is little scope for central banks to use conventional means to stimulate the UK's weak economy, which has dipped in and out of recession since the 2008 financial crisis. » | Tuesday, February 26, 2013
