By David Milliken and Andy Bruce
LONDON, Oct 5 (Reuters) – Bank of England rate-setter Jonathan Haskel said on Monday he saw downside risks to the economy, and also some possible benefits from cutting interest rates below zero, though it was too soon to reach a firm conclusion on this.
The BoE, which cut interest rates to a record-low 0.1% in March, is now looking at whether it is technically feasible to cut its main interest rate below zero, something that has already been done in Japan and the euro zone.
The Bank of England’s chief economist, Andy Haldane, and one of its deputy governors, Dave Ramsden, have expressed doubts about whether this would be helpful, but one external policymaker, Silvana Tenreyro, has been more supportive.
Haskel, like Tenreyro, said evidence from the European Central Bank suggested that cutting interest rates below zero could boost lending, and that banks