The bank of England Governor, Andrew Bailey, head of the united KINGDOM, the central bank is currently reviewing all of its tools, and it would be foolish to rule out one of them, as well as a negative interest rate.
“We don’t rule things out as a matter of principle,” Bailey told lawmakers at a Treasury committee hearing on Wednesday.
More specifically, on the negative interest rates, ” the BoE Chief said, “We are not ruling it in,” and we’re not ruling it out.”
United KINGDOM, interest rates are at a record low level of 0.1 percent.
Bailey said policy makers are studying the experience of other central banks negative rates. The Bank of Japan and the European Central Bank to have negative interest rates.
The vice-Governor of the BoE Ben Broadbent, who was also present at the hearing, suggested that the recovery could be in the form of an “unbalanced’ V.’
The legislator said that the recovery is unlikely to be immediate, but a long-term process.
The official data published last week showed that that that that that the GDP has fallen 2 percent in the first quarter, or the year 2020, which was the worst fall since the global financial crisis of 2008.
The think-tank NIESR predicted that the UK GDP is set to fall 25 to 30 percent in the second quarter due to the impact of the feline corona virusor Covid-19, and the lock-in imposed to stop the pandemic.
The difference, on Wednesday, the BRITISH government has sold a long-term obligation to a negative return for the first time.
The government would auction of GBP 3.75 billion of three-year bonds at an average yield or of -0.003 percent.
Great britain had been sold short term debt at negative yield in 2016.
For comments and feedback contact: firstname.lastname@example.org
What parts of the world, we see the best (and worst) economic performance in recent times? Click here to see our scorecard and find out!!! See the up-to-the-point-off-for-the-best-and-worst performer in GDP, unemployment rate, inflation and much more.