Paul Tucker backtracks on possibility of negative interest rates
Thursday 02 May 2013
Paul Tucker, the Bank of England deputy governor, yesterday admitted that the prospect of negative interest rates to boost lending was a non-starter, little more than two months after floating the idea.
Mr Tucker suggested to MPs in February that lenders could be charged on their deposits with the central bank in an attempt to get credit flowing in the economy.
The comments were immediately described as "blue-sky thinking" by Mr Tucker's fellow deputy governor Charlie Bean.
Mr Tucker told a regional paper: "It's most unlikely it would happen in the context of the debate within Parliament but it's important that we are open and that we should think about all sorts of things. I wouldn't want the public to think that we sit on our hands and know the answers to everything – we are always trying to think about new things."
He was also more upbeat after the economy's 0.3 per cent advance in the first quarter. "We shouldn't get too excited by one quarter but looking over the past year, it's perhaps not as bad as the headline figures suggest," he said.
- 1 Half of young women unable to ‘locate vagina’ and 65% find it difficult to say the word
- 2 Perez Hilton apologises for Jennifer Lawrence naked photo leak
- 3 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
- 4 Mexican woman becomes world’s 'oldest person' at 127
- 5 Jennifer Lawrence 'naked sex video' will be leaked threatens 4Chan celebrity photo hacker
Rotherham child sex abuse scandal: Labour Home Office to be probed over what Tony Blair's government knew - and when
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Ashya King: Parents of five-year-old boy refused permission to visit him in hospital and denied bail at Spanish court
With Douglas Carswell joining Ukip, my party has taken another giant step forward
When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
Ashya King: 'Cruel NHS has not given us the treatment we need', says father of five-year-old with brain tumour who fled to Spain
iJobs Money & Business
£40000 - £50000 per annum + benefits+bonus+package: Harrington Starr: SQL Impl...
£85000 per annum: Harrington Starr: Head of IT (Windows, Server, VMware, SAN, ...
£40000 - £50000 per annum: Harrington Starr: You will not be expected to hav...
£500 per day: Harrington Starr: SQL DBA/Developer SQL, C#, VBA, Data Warehousi...