Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. 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 Nick Hayes: finding good bonds in negative yield world

Nick Hayes: finding good bonds in negative yield world

Why do some bonds offer 'negative yields' and how do you avoid them? Nick Hayes of AXA Investment Managers explains.

Play Neil Gregson: gold is prettiest in ugly contest

Neil Gregson: gold is prettiest in ugly contest

The JP Morgan Natural Resource fund manager talks about the prospects for gold with plenty of uncertainty in the global economy.

Brewin's Gutteridge & Foster talk property with Standard Life's Baggaley

Brewin's Gutteridge & Foster talk property with Standard Life's Baggaley

Gutteridge and Foster discuss UK commercial property with Jason Baggaley, manager of the Standard Life Property Income investment trust

Your Business: Cover Star Club

Profile: Creechurch Capital’s CEO on going the extra mile in a crowded market

Profile: Creechurch Capital’s CEO on going the extra mile in a crowded market

Growing a business is the main aim of many company owners but managing that growth in a controlled way is just as important

Wealth Manager on Twitter