BOE Tells Banks to Get Ready for Negative Rates Possibility

BOE Tells Banks to Get Ready for Negative Rates Possibility


BOE Tells Banks to Get Ready for Negative Rates Possibility
This content was published on February 4, 2021 - 14:40
February 4, 2021 - 14:40
(Bloomberg) -- The Bank of England told banks to start getting ready for negative interest rates, while saying that message shouldn’t be taken as a signal that the policy is imminent.
The central bank’s Prudential Regulation Authority said most financial institutions aren’t sufficiently prepared, especially as regards to retail products like rate-tracking mortgages, so they should take at least six months to set their systems up without running undue risks. The BOE made the announcement as it held its key rate at a record low of 0.1%.

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