Economics
BOE Path to Negative Rates Is Lit by the Experiences of Others
- Officials say they are reviewing case for sub-zero rates
- Experience of peers in Europe, Japan may prove useful
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The Bank of England has one big advantage when it comes to the contentious topic of negative interest rates: it’s no pioneer.
Experiences elsewhere provide the U.K. central bank with options on how to navigate one of the boldest monetary experiments in the 21st century. It’s long been controversial in the euro area, where banks, politicians and savers have criticized it. And while meant to be temporary, the European Central Bank’s record shows that reversing course isn’t easy.