BoE Deputy Governor Sam Woods sent as letter to banks asking for their readiness on negative interest, as it could be an option to take based on current situation.
“We are requesting specific information about your firm’s current readiness to deal with a zero Bank Rate, a negative Bank Rate, or a tiered system of reserves remuneration – and the steps that you would need to take to prepare for the implementation of these,” Woods said in a letter.
“We are also seeking to understand whether there may be potential for short-term solutions or workarounds, as well as permanent systems changes,” he said.
