Economics

BOE Not Considering Negative Rates Right Now, Bailey Says

Policy would pose issues for banks, communication challenge
Says ‘extreme notions’ of monetary financing not being pursued

The Bank of England stands in the City of London.
Photographer: Simon Dawson/Bloomberg

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By Jill Ward and Lucy Meakin

May 14, 2020 at 11:12 AM UTC

Updated on

May 14, 2020 at 12:26 PM UTC

This article is for subscribers only.

The Bank of England isn’t currently considering lowering interest rates below zero, according to Governor Andrew Bailey, a day after the U.S. central bank chief also pushed back against the idea.

“It is not something that we are currently planning for or contemplating,” Bailey said during a web conference with the Financial Times on Thursday. Still, he added that “it’s always wise, and particularly in these circumstances, not to rule anything out forever.”