7
September
Bank of England may introduce negative interest rates for the first time in British history this week
7 September 2009 The Telegraph
City analysts suspect the Bank may consider cutting the interest rate paid to banks on their reserves with the central bank in an effort to stop institutions hoarding the extra money created by quantitative easing and increase lending. Some think it may even introduce a charge for holding a certain amount of cash with the Bank.
After last month's surprise £50bn increase in the quantitative easing (QE) target, economists expect the Monetary Policy Committee to keep interest rates unchanged at 0.5pc and hold the level of QE at Thursday's September meeting.
