LONDON (Reuters) - Bank of England Deputy Governor Ben Broadbent said the central bank would need to take a balanced view of whether cutting interest rates below zero would help Britain’s economy cope with the coronavirus shutdown or have negative consequences.
“We keep under review all our potential policy tools and this is a question that’s been thought about on and off since the financial crisis and it’s a balanced judgment,” Broadbent told CNBC television.
While cutting rates further could stimulate demand, they could but also have side effects for banks whose lending is vital for the economy, he said.
“These are the balanced questions that the committee has to think about,” Broadbent said.
Writing by William Schomberg; Editing by Alison Williams