Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. Registration is free and only takes a minute.

BoE’s Tucker moots negative interest rates to kick-start economy

5 comments
BoE’s Tucker moots negative interest rates to kick-start economy

Paul Tucker, the deputy governor at the Bank of England, has suggested negative interest rates should be considered to kick-start bank lending.

Speaking to MPs on the Treasury Committee, Tucker said he raised the idea as one alternative way to help revive the UK economy, the BBC reports.

Negative interest rate would mean the Central Bank charges commercial banks to hold their money, with the aim of spurring the banks to lend more.

‘I hope we will think about whether there are constraints to setting negative interest rates,’ said Tucker.

‘This would be an extraordinary thing to do and it needs to be thought through carefully.’

Interest rates have been stuck at a record low of 0.5% for nearly four years, punishing savers who have seen the income from their savings drop since the crisis.

Other measures undertaken by the Bank to boost the economy have included £375 billion of quantitative easing.

Further possible measures include buying assets other than government bonds and reducing the marginal rate of interest on bank reserves held at the Bank to encourage them to lend more, the BBC reports.


Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Investment Pulse: the highs and lows of 2014

Investment Pulse: the highs and lows of 2014

This week's Investment Pulse looks back at some of the biggest stories of the year as well as looking forward to 2015.

Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter