26-02-2013, 20:09
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#5
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Trollsplatter
Cable Forum Team
Join Date: Jun 2003
Location: North of Watford
Services: Humane elimination of all common Internet pests
Posts: 38,296
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Re: (BoE) deputy governor has mooted the idea of 'negative' interest rates
Don't worry, the Bank of England will never allow negative interest rates.
Quote:
Could the Bank of England really be prepared to cut interest rates until they were negative, as the deputy governor Paul Tucker has suggested? To be clear, that means depositors would have to pay to place their money with the central bank. And the answer to the question is "no".
First, in case savers were worried, there would be no prospect of banks themselves moving to negative interest rates. Depositors would withdraw their cash and stick it under the mattress, where it would earn a better income, causing such enormous funding problems for the lenders that it would never even be a consideration.
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