FINANCE UPDATES – December 2020 –Could Interest Rates Turn Negative
In a year of firsts for many of us, the Bank of England (BoE) has
mooted a first of its own: they have asked the banks if they are
operationally ready for negative interest rates. That is, banks,
and by extension those that save with them, would be charged
for holding onto cash.
It is worth stressing this hasn’t happened yet, nor is it imminent.
But it does appear to be a monetary tool the BoE is considering
in managing the economic response to COVID-19.
FINANCIAL UPDATES –Could Interest Rates Turn Negative