The Sunday Times reported that BoE Governor Andrew Bailey has sent a letter to bankers telling them “negative rates were one of the potential tools under active review”. It’s one of the options if more stimulus was needed to lift inflation back to 2% target. And it would be a “significant operational undertaking for firms” as a year could be needed to alter computer systems and update contracts.
Additionally, it’s said that Bailey emphasized “every tool they have is on the table” at a meeting with bankers at the end of June.
