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No-Deal Brexit May Be the Trigger for BOE to Use Negative Rates

  • U.K. central bank is getting ‘ducks in a row,’ says RBC
  • Possibility of disruptive end to 2020 is focusing officials
Outside the Bank of England (BOE) in London on Aug. 4.
Photographer: Simon Dawson/Bloomberg
Updated on

The Bank of England’s preparations for the aftermath of a potentially messy Brexit could include a new weapon by the end of the year.

Policy makers on Thursday gave the strongest signal yet that they’re considering using negative interest rates, saying they’ll work with bank regulators in the fourth quarter on how they might implement such a policy for the first time in the central bank’s history.