Negative interest rates idea floated

This is about as likely as horse meat in your Spag Bol.

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

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.

via BBC News – Negative interest rates idea floated by Bank’s Paul Tucker.

A pretty challenging idea. It essentially means it would cost to leave money on deposit so it would be better to lend it out. This in turn would stimulate the economy. So how likely is this to happen?

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