Preparing for Negative Interest Rates

FT Adviser reports “The Bank of England is asking banks and building societies to be ready to implement negative interest rates by the end of the summer, as it kept the base rate at 0.1 per cent.

Although the central bank was clear it did not intend to set a negative bank rate at this stage, minutes from the latest Monetary Policy Committee meeting showed it would ask firms to prepare for negative rates in case it was necessary for the future.”

“The Prudential Regulation Authority is to write to chief executives of the firms it regulates — which includes banks, building societies, insurers and credit unions.” Read more