BOE's Broadbent: Question on negative rates is whether or not they would be effective
Comments from the MPC member
- It's probable that mitigating efforts could be stronger when bank balance sheets are under pressure
- We will be getting answers back from banks on negative rates soon
- Question of whether we would cut rates below zero will rest on economic questions
- There are complex issues involved in negative rates
That's kind of like asking prisoners whether they want a lock on the cell. I imagine banks are going to tell the BOE anything they can to avoid negative rates.