BOE Governor: "Negative Interest Rates Not Currently Under Consideration" (Comprehensive)

[Image source=EPA Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] Andrew Bailey, Governor of the Bank of England (BOE), stated on the 14th (local time) that the BOE is not currently considering the introduction of negative interest rates.

Governor Bailey said during a web conference, "We are not planning or considering negative interest rates at the moment," adding, "Negative interest rates would put commercial banks in difficulty."

However, he added, "It is always wise not to say that anything is 'absolutely not'," especially in situations like the current one.

Earlier, there were talks in the market that the BOE might lower the base interest rate, currently at 0.1%, to negative territory. This is because the UK is expected to experience its worst economic recession in 300 years.

Meanwhile, Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), also stated the previous day that "negative interest rates are not currently being considered." However, he did not completely rule out negative interest rates among the policy options available in the future.

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