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Bank of England ‘not there yet’ on negative rates: Bailey

FILE PHOTO: Bank of England press conference

LONDON (Reuters) – The Bank of England is not yet at a point where it can decide on whether it should cut interest rates below zero, Governor Andrew Bailey said on Tuesday, reiterating his policy stance on the closely watched topic.

Bailey highlighted a letter which the BoE sent to banks on Monday, asking them whether they would be able to implement negative interest rates.

“Only when we get through these questions (on practicality) will we be in a position to say if it is a tool we would use. We are not there at the moment,” he said.

(Reporting by William Schomberg, writing by David Milliken, editing by Estelle Shirbon)

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