The Bank of England on Thursday said it was time to start preparing for negative interest rates. “While the Committee was clear that it did not wish to send any signal that it intended to set a negative Bank Rate at some point in the future, on balance, it concluded overall that it would be appropriate to start the preparations to provide the capability to do so if necessary in the future,” the central bank said, as it kept its key interest rate at 0.1% and maintained its bond purchase program. The pound rose after the decision, and the yield on the 2-year gilt also moved higher.
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