A speech from a Bank of England (BoE) official last week rekindled speculation that the central bank might be seriously considering cutting the UK base rate, currently at 0.1%, into negative territory, because it could provide a significant economic stimulus.
There has been robust debate within the BoE over the past year about the merits and risks of adding negative interest rates to its monetary toolkit. The issue was floated last summer, after which BoE policy-makers appeared to row back on the suggestion.
