Bank of England paves way for negative interest rates
by Phillip Inman and Larry Elliott from on (#53PTN)
Governor says all options are open after UK sells first ever bond with negative yield
The Bank of England governor, Andrew Bailey, has paved the way for negative interest rates in a dramatic move that illustrates concerns inside the central bank that the impact of the coronavirus lockdown will be longer and deeper than expected.
Bailey said central bank officials were actively considering all options to help see the economy through a deep recession and told MPs that it would be foolish" to rule out cutting the cost of borrowing to below zero.
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