- The Bank of England is prepared to introduce negative interest rates, if necessary
- This could drive up the price of equities, bonds and gold
The Bank of England (BoE) is laying the groundwork for negative interest rates, with governor Andrew Bailey describing the policy as part of the bank’s ‘toolbox’ for stimulating an economic recovery. Despite the BoE having already pumped £310bn of quantitative easing into the financial system this year, the economy is struggling to recover amid rising coronavirus infections, so it may implement this policy.