THE GUARDIAN: Lenders asked what steps they would take if official borrowing costs were pushed below zero
The Bank of England has moved a step closer to adopting negative interest after writing to banks asking them how ready they would be for the ground-breaking move.
Sam Woods, one of Threadneedle Street’s deputy governors, has asked banks what steps they would need to take in the event that official borrowing costs were pushed below zero.
Woods said: “For a negative bank rate to be effective as a policy tool, the financial sector – as the key transmission mechanism of monetary policy – would need to be operationally ready to implement it in a way that does not adversely affect the safety and soundness of firms.” » | Larry Elliott | Monday, October 12, 2020
