UK interest rates likely to fall below zero in 2021

Bank of England is investigating ways of removing obstacles to step, aimed at boosting economy

The Bank of England could cut interest rates to below zero next year after officials said preparations were under way to allow the central bank to support the economy with lower borrowing costs.

In a move that would bring the BoE into line with the European Central Bank and the Bank of Japan, the monetary policy committee (MPC) said it was seeking to overcome obstacles to negative interest rates that would allow further cuts from the current 0.1% base rate.

Gross domestic product (GDP) measures the total value of activity in the economy over a given period of time.