Bank of England chief economist tentatively discusses negative interest rates

by Property 118

10:27 AM, 19th May 2020
About 3 months ago

Bank of England chief economist tentatively discusses negative interest rates

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Bank of England chief economist tentatively discusses negative interest rates

Andy Haldane, the Bank of England’s chief economist, has told the Sunday Telegraph that negative interest rates could be considered in an effort to combat economic effects of the coronavirus lockdown measures.

Haldane indicated the Bank of England is currently reviewing a number of monetary options it could take in its response to the global pandemic. These also including expanding the scope of the bank’s asset purchase quantitative easing plan to include riskier securities, but this would unlikely be implemented imminently. However, it could be looked at with greater immediacy due to the weakening position of the UK economy.

Haldane told Bloomber: “You mention negative rates, but there are other options beyond that, or alongside that, that we’re looking at as well.”

“With QE there is more we can do there on the gilt side and the corporate bond side in principle as we’ve found from other central banks, you could purchase assets further down the risk spectrum. I don’t want to imply we’re poised on any of those but we have over a number of years been reviewing all of our options for more, if more is needed.”

The Governor of the Bank of England, Andrew Bailey, remains sceptical of negative interest rates due to their poor recent results in other countries and that it could undermine the central bank’s ability to influence borrowing costs across the economy.



Comments

Kathy Evans

10:56 AM, 28th May 2020
About 2 months ago

Reply to the comment left by Question Everything at 28/05/2020 - 10:13
I certainly wish I knew where to get the 8% savings interest. My properties all in negative equity by 25-30% of the mortgage amount - that's how much property prices have fallen here. I wanted to sell 5+ years ago but couldn't and it's got no better.

Question Everything

12:31 PM, 28th May 2020
About 2 months ago

Reply to the comment left by Kathy Evans at 28/05/2020 - 10:56
Shame about the properties, sounds like a difficult situation, and I'd hate to tell you what to do, but I expect property prices to continue to fall.

Nexo.io for 8% on GBP, I have two accounts with them. It is a Local UK transfer in so no cost there, but your money is held off the UK. No .gov insurance therefore, but then I trust .gov less.

Not financial advice! Do your own research.

Paul Shears

19:17 PM, 28th May 2020
About 2 months ago

Reply to the comment left by Question Everything at 28/05/2020 - 12:31
It really is a complete tragedy, in what claims to be at least some sort of first world democracy, that a person should be obliged to do this. Let me be quite clear, I am in no way being critical of the proposed action. I do feel passionately about the need to do so.
I recently learned that a significant investment that I proposed to make, would have become liable for capital gains tax should I retire abroad as it would need to be sold once I am no longer a UK subject. Needless to say, I will not now be making that investment.
So you serve the sentence for the crime that you did not commit, pay all the taxes for the duration, then as a parting "gift" you get hit again on your release from prison.

Question Everything

19:36 PM, 28th May 2020
About 2 months ago

Reply to the comment left by Paul Shears at 28/05/2020 - 19:17
We are just prisoners of this Island who had to come from somewhere, it was only by chance this is where we were born. "We" did not make it, but we have contributed by our efforts. When you begin to realise that the guards of the prison are exploiting the inmates, you realise that "they" are not doing it for the prison's benefit but their own, no matter what propaganda they sell you. The lie of nationality as if it is something you owe someone else has been abused to no end, including the murder of millions of innocent people to go to a war they have no understanding of but need a job to pay for their loved ones.

If our efforts could be seen in the benign running of a society, then one would feel obliged to continue to contribute, but as the exploitation and abuse of the system is so malevolent one figures there is no point giving caviar to pigs. The ultimate sovereignty is self-sovereignty, that is not being self-ish, it is understanding that all people run their own worlds and so therefore should be independent entities (give or take). Co-operation is a virtue, but telling someone that they are going to be robbed for the "common good" is a form of abuse.

Did anyone in government take a pay cut to "rally with the boys" during these times? Do we think their overinflated wages could not be trimmed a bit and passed on to the less fortunate? I bet they could support most of the minimum wage of this country with a 3 month sabbatical on their wages. If they are so concerned lets see them put THEIR money where their mouth is instead of reaching into our pockets all the time. rant rant rant......

Paul Shears

22:06 PM, 28th May 2020
About 2 months ago

Reply to the comment left by Question Everything at 28/05/2020 - 19:36
I'm beginning to wonder if we are not related...... 🙂

Question Everything

22:11 PM, 28th May 2020
About 2 months ago

Reply to the comment left by Paul Shears at 28/05/2020 - 22:06
🙂

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