BoE's Broadbent Says Negative Rates Possible After Considering Risks
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BoE's Broadbent Says Negative Rates Possible After Considering Risks
Bank of England is likely to consider more monetary easing in future after weighing the side-effects of negative interest rates, to help the UK economy recover from the historic shock dealt by the coronavirus, or Covid-19, pandemic, Deputy Governor Ben Broadbent said Tuesday.The Monetary Policy Committee is "certainly prepared to do what is necessary" despite downside risks, Broadbent told CNBC in an interview.
The policymaker said it is possible that more monetary easing will be needed in future, and the central bank will need to take a balanced view regarding the tools at its disposal.
Earlier this month, the Bank of England maintained its key interest rate at a record low and refrained from unveiling additional quantitative easing as the economic outlook remained highly uncertain.
The MPC voted 7-2 to continue with the quantitative easing of GBP 645 billion. Jonathan Haskel and Michael Saunders sought an increase in the target for the stock of asset purchases by an additional GBP 100 billion.
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