How low can the Bank of England go? Six considerations for negative interest rates

Go alone for follow the crowd?

clock • 4 min read

For three centuries, the Bank of England had never set its base rate below 2%.

But the economic convulsions of the past decade have driven the base rate to just above zero, and now the Bank is debating whether to follow the example of the eurozone, Japan and several other countries in setting a negative interest rate. What can we learn from the experience of these countries? Negative can mean pretty negative The European Central Bank (ECB) is the most obvious comparator for the Bank of England. It moved gingerly in setting negative interest rates and suggested several times that it would go no further. But over six years, it has brought its policy rate bit ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Economics

Trustpilot