Interest rates could go negative, Bank of England's Vlieghe says

But the MPC member says the Bank would have to be cautious about undermining the bank funding model if savers start hoarding cash

A top Bank of England policymaker has floated the possibility of interest rates being cut below zero, meaning companies would pay to deposit their money with banks.

Jan Vlieghe, a member of the BoE's nine-strong monetary policy committee, did not rule out the idea of following other central banks in taking interest rates negative but said the Bank would "have to think very carefully" about whether the positive effects would outweigh the downsides.

Related: The problem with negative interest rates