Bank of England shies away from negative rates, criticizing cryptocurrency

The Bank of England (BOE), which asked British banks to prepare for the potential use of negative interest rates, is not “expected” to implement them immediately, its governor said yesterday. Andrew Bailey, criticizing cryptocurrencies in passing. This monetary policy measure, already in force in the European Union or Japan, and aimed at promoting growth by encouraging banks to lend to businesses and individuals, remains controversial.

As the Kovid-19 pandemic hit the UK and plagued the economy, BoE lowered its key rate to its all-time low, 0.1%, and prepared the relevant financial institutions for a possible switch to a negative rate. Asked for Conversely, BoE’s Monetary Committee now sees “risks on both sides”, a member of the Monetary Committee, John Cunliffe, said in his annual report: If a new wave of pandemics continues to fear recession, chances are high Recovery with excessively loose monetary policy can create uncontrolled inflation, encouraging him to be cautious.

At its monetary policy meeting earlier this month, BoE decided to maintain its rate.

The Bank of England (BOE), which asked British banks to prepare for the potential use of negative interest rates, is not “expected” to implement them immediately, its governor said yesterday. Andrew Bailey, criticizing cryptocurrencies in passing. This monetary policy measure is already implemented in the European Union …

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