Coming soon to your bank account - negative rates

[AtW]

... strictly to protect the UK economy because people without massive debts are dangerous!!!

"The Bank of England may need to push its interest rates into negative territory to fight off the next recession, its chief economist has said.

Andy Haldane, one of the Bank’s nine interest rate setters, made the case for the "radical" option of supporting the economy with negative interest rates, and even suggested that cash could have to be abolished.

He said that the "the balance of risks to UK growth, and to UK inflation at the two-year horizon, is skewed squarely and significantly to the downside".

As a result, "there could be a need to loosen rather than tighten the monetary reins as a next step to support UK growth and return inflation to target".

Source: Negative interest rates could be necessary to protect UK economy, says Bank of England chief economist - Telegraph

What's next - negative pensions? "This month it's -1000 GBP in your pension pot, Sir"

How is that man still got a job?!?!?

[The Butcher]

... strictly to protect the UK economy because people without massive debts are dangerous!!!

"The Bank of England may need to push its interest rates into negative territory to fight off the next recession, its chief economist has said.

Andy Haldane, one of the Bank’s nine interest rate setters, made the case for the "radical" option of supporting the economy with negative interest rates, and even suggested that cash could have to be abolished.

He said that the "the balance of risks to UK growth, and to UK inflation at the two-year horizon, is skewed squarely and significantly to the downside".

As a result, "there could be a need to loosen rather than tighten the monetary reins as a next step to support UK growth and return inflation to target".

Source: Negative interest rates could be necessary to protect UK economy, says Bank of England chief economist - Telegraph

What's next - negative pensions? "This month it's -1000 GBP in your pension pot, Sir"

How has that man still got a job?!?!?

FTFY

[DimPrawn]

Next logical steps really.

Charge people for having money and give this in the form of cheap credit to the debt slave voters.

Cheaper credit for the debtors, push up house prices.

Same old same old.

[MarillionFan]

Yes please. Make it negative so my mortgage company pays me to have a mortgage, while in the meantime all my money is invested elsewhere on 5% fixed rates, Zopa and buy to lets.

I think it's a great idea.

[DimPrawn]

Yes please. Make it negative so my mortgage company pays me to have a mortgage, while in the meantime all my money is invested elsewhere on 5% fixed rates, Zopa and buy to lets.

I think it's a great idea.

I'm going to borrow a billion pounds and live off the interest.

[OwlHoot]

FTFY

In Russian it must be "How _is_ that man still got a job?"

[MarillionFan]

I'm going to borrow a billion pounds and live off the interest.

Lookin forward to my 5% bonds finishing in Feb.
Really looking forward to those top notch 1.5% 5 year deals now.

[NibblyPig]

How is this even possible?

Accepting deposits into the royal bank of my sock drawer

[jamesbrown]

Andy Haldane spouts this utter tulip every few weeks, usually after hawkish comments from others on the MPC (e.g. Carney et al. at the Inflation Report this week). Expect something in a Sunday paper from Carney or someone else calling this out as tulip. I wish they'd all just STFU, as they're no better at forecasting a few months ahead than the rest of us.

[DimPrawn]

It's a new paradigm.



http://www.wsj.com/articles/danish-l...tes-1423576590