BoE’s Broadbent eyes raise out of negative rates on banks

LONDON (Reuters) – Bank of England Deputy Governor Ben Broadbent acknowledged on Friday that policymakers had to take into sage whether negative interest rates might perhaps well also need counterproductive effects accurate thru cases of stress on banks’ balance sheets.

In this form of scenario, there might perhaps be mostly a threat that banks would decrease lending to perform up for prices and decrease margins on account of negative interest rates, Broadbent acknowledged.

“Then the ask is: are those pressures ample to indicate that these mitigating effects – the downside dangers of lowering rates under zero – outweigh the advantages?” Broadbent acknowledged in a presentation organised by regional brokers of the central financial institution.

The BoE is conducting a review into negative interest rates to gape how they might perhaps even just work in Britain.