Mark Carney say’s ‘negative rates not an option’

The governor of the Bank of England (BoE) Mark Carney has said that negative interest rates will not be pursued by the Bank.

In an interview published on Monday by Central Bank magazine Carney said, “At this stage we do not see negative rates as an option here.

“I am not criticising others that have used them, but we don’t see it as an option.”

The Bank has kept interest rates at 0.75%. However, in the event of a no-deal Brexit this could cause the lowering of rates in an attempt to support the economy.

Carney said that negative interest rates could be “counter productive” as it is the Bank’s view “that the effective lower bound is close to zero, but positive, just above zero.”