Negative interest rates could have ‘slightly positive’ effect - impacts explored

In recent months, a number of MPC members have expressed the potential for negative interest rates to be implemented in the UK.

Gertjan Vlieghe, a member of the MPC said his own view was “the risk that negative rates end up being counterproductive to the aims of monetary policy is low”. 

Previously, Jonathan Haskel and Silvana Tenreyo, also MPC members, said there was “positive” and “encouraging” evidence respectively on the effectiveness of negative rates. 

Negative interest rates have never been implemented within the UK’s economic history.