LONDON (Reuters) – Bank of England Deputy Governor Dave Ramsden said he thought the floor for the central bank’s key interest rate was 0.1% but the BoE was “duty-bound” to consider whether it could take rates below zero.
“For me, I see the effective lower bound still at 0.1 which is where Bank Rate is at present,” Ramsden said in an interview with Britain’s Society of Professional Economists posted online.
The BoE, seeking ways to help Britain’s economy through the coronavirus crisis, said this month it would look at how it might be able to implement negative rates if they were needed.
That comment built on an announcement in August that the option of a sub-zero Bank Rate was part of the BoE’s toolbox.
One of the BoE’s nine interest-rate setters, Silvana Tenreyro, said in a newspaper interview published on Saturday that the investigation into whether negative rates might help