Bank of England WILL use negative interest rates 'if things don't pick up', Governor says

The Bank of England Base Rate hit the historic low following two successive cuts in March 2020.

Mr Ramadan has said negative interest rates are a “tool” if forecasts for the recovery of the UK economy did not materialise.

He told the Yorkshire Post: “We want to be in a position that if things didn’t get better as we are forecasting, if some of downside risks around new variants arose, that that tool of negative rates can be feasibly used if at the time we made the policy decision to use it.

“So we have asked banks on a contingency basis to do the preparations over the next six months so that tool is ready.

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