Bank of England's Paul Tucker backs negative rates idea

[dipsydoodle]

Bank of England deputy governor Paul Tucker has said negative interest rates should be considered.

The Bank rate has been at a record low of 0.5% for almost four years.

A negative interest rate would mean the central bank charges banks to hold their money and could encourage them to lend out more of their funds.

Speaking to MPs on the Treasury Committee, Mr Tucker said: "This would be an extraordinary thing to do and it needs to be thought through carefully."

http://www.bbc.co.uk/news/business-21589128

[DetlefK]

1. The swiss banks did this at the height of the crisis.

The charged their customers a negative interest-rate: Would you rather invest in a bank-account where you loose 1% over a year, or would you invest in the stock-market and risk loosing 50%?