Negative rates may be needed to boost recovery, says Bank official
4 years, 2 months ago

Negative rates may be needed to boost recovery, says Bank official

The Telegraph  

Negative interest rates could soon be needed to boost the economy as the second Covid wave hits the recovery, a top Bank of England policymaker has indicated. Gertjan Vlieghe, a member of the Bank's Monetary Policy Committee, said growth was flagging and thus more stimulus could be on the way. The Bank has taken interest rates to a record low of 0.1pc and used quantitative easing to inject more money into the system and lower rates in financial markets. However, Mr Vlieghe said that “QE is probably less potent now than in March”, which meant the Bank needed to consider other options including taking rates below zero.

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History of this topic

The Bank of England’s next moves as the UK shifts from crisis to recovery
3 years, 7 months ago

The Bank of England’s next moves as the UK shifts from crisis to recovery

The Telegraph  

From its grizzly bears and wolf packs to its prairies and permafrost, Canada is a land of the wild frontier. The Bank of Canada is leading the way into new territory when it comes to reining in quantitative easing, the massive money-printing experiment that largely began in the financial crisis as central banks ran out of room to cut interest …

Why the Reserve Bank and the federal government don't see eye to eye on Australia's coronavirus recovery
3 years, 9 months ago

Why the Reserve Bank and the federal government don't see eye to eye on Australia's coronavirus recovery

ABC  

These are unusual times. As the federal government is adamant that stimulus needs to be wound back, to allow the private sector to take over in the recovery, the Reserve Bank is doubling down, arguing that it will be years before Australia can wean itself off the emergency interest rates that have sunk to zero. Responsible lending not responsible Ever …

Negative interest rates: what are they for and what would they mean for you?
3 years, 10 months ago

Negative interest rates: what are they for and what would they mean for you?

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Please try again later {{ …

Why negative interest rates could be on the way
3 years, 11 months ago

Why negative interest rates could be on the way

The Telegraph  

Negative interest rates could be the key to boosting the economy out of the Covid recession, saving jobs and businesses on the way, according to a top Bank of England policymaker. Silvana Tenreyro set out a series of reasons why taking the base rate below zero could be “powerful” for financial markets and the economy, even though traditionally economists thought …

Negative interest rates could put an end to free banking, experts warn
4 years, 2 months ago

Negative interest rates could put an end to free banking, experts warn

The Telegraph  

Negative interest rates could spell the end of free bank accounts, experts warned after the Bank of England gave its clearest indication yet that the controversial policy could be introduced. Sir Philip Hampton, who was chairman of taxpayer-backed Royal Bank of Scotland at the height of the financial crisis, said: "In the case where negative rates are significant and prolonged, …

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