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Bank of England told banks to start getting ready for negative interest rates,

  • Last Updated:
  • Feb 4th, 2021 7:06 pm
[OP]
Deal Addict
Jan 12, 2014
3334 posts
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Laval

Bank of England told banks to start getting ready for negative interest rates,

https://www.bloomberg.com/news/articles ... -if-needed
The Bank of England told banks to start getting ready for negative interest rates, while saying that message shouldn’t be taken as a signal that the policy is imminent.

The central bank’s Prudential Regulation Authority said most financial institutions aren’t sufficiently prepared, especially as regards to retail products like rate-tracking mortgages, so they should take at least six months to set their systems up without running undue risks. The BOE made the announcement as it held its key rate at a record low of 0.1%.

The move raises the threat that the central bank will push borrowing costs below zero, turning the lending business on its head by charging depositors to store cash while giving money back to borrowers. The BOE has been studying the case for negative rates for almost a year as a way to pull the U.K. out of its worst slump in three centuries. So far, it hasn’t followed counterparts in Europe and Japan in implementing the policy.
3 replies
Newbie
Oct 26, 2020
32 posts
35 upvotes
Omg here we go again. Just when we thought house prices couldn't get any higher and cash couldn't be devalued anymore...
Deal Addict
Oct 27, 2012
2108 posts
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Toronto
Variable or bust guys.

The economy is going to be a shitshow for the next few years... the government is not singularly looking at the housing market. Businesses of all kinds are suffering, the CAD is remaining stubbornly high despite being worth less than Zimbabwe Dollars when spent on housing.
Member
Jul 23, 2020
262 posts
222 upvotes
ozzie16 wrote: Variable or bust guys.

The economy is going to be a shitshow for the next few years... the government is not singularly looking at the housing market. Businesses of all kinds are suffering, the CAD is remaining stubbornly high despite being worth less than Zimbabwe Dollars when spent on housing.
Indeed, crypto is about to rocket

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