Negative interest rates are a possibility in UK, but far from a certainty | Larry Elliott

Analysis: economy would have to get much worse for Bank's monetary policy committee to take unprecedented step

The Bank of England is a venerable institution. Not once since it was founded in 1694 have interest rates gone negative and there is no immediate prospect of that 327-year-long record ending.

To be sure, the most interesting piece of news from Threadneedle Street's quarterly monetary policy report was that banks and building societies have been given six months to get ready for the possibility that rates might need to go below zero.

In February 2021 the Bank of England told high street banks and building societies they have six months to prepare for negative interest rates. BoE policymakers stressed that the request did not mean a cut in borrowing costs below zero was imminent or even likely, but with few tools left to boost the economy in the event of a downturn, the central bank needs negative rates to be available as an option.

Related: UK banks given six months to prepare for possibility of negative interest rates