BOE's Broadbent: Question on negative rates is whether or not they would be effective

Author: Adam Button | Category: Central Banks

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.

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