General Chat Thread, Bank Of England Mulls Negative Interest Rates? in General; Link: Bank of England mulls negative interest rates - Telegraph
So the Government are still paying back the debt incurred ...
26th February 2013, 06:50 PM #1
Bank Of England Mulls Negative Interest Rates?
Link: Bank of England mulls negative interest rates - Telegraph
So the Government are still paying back the debt incurred by supporting banks when they failed after a run on those banks.
Wouldn't negative interest rates encourage savers to withdraw their money and keep it at home, spend it, whatever? In other words wouldn't this risk another run on more banks?
Just a thought.
IDG Tech News
26th February 2013, 07:05 PM #2
Back Door Tax!!
everyone would move money to non UK funds.
26th February 2013, 09:07 PM #3
I suppose strictly speaking these "negative" interest rates would only be on offer to banks who borrow from the BOE. I guess the idea would be to prevent banks hoarding currency and theoretically encouraging them to lend out more. Savings accounts would presumably still pay you a positive interest rate as this is typically a couple of percent higher than the base rate so I doubt it would lead to a bank run though it would probably encourage people to spend rather than hold cash. It does sound like a slightly crazy idea though!
Of course you could already argue if a savings account is only paying you 1-2% and 'official/rigged' rate of inflation is 3% then holding money in a savings account is effectively costing you money.
Last edited by flyinghaggis; 26th February 2013 at 09:58 PM.
26th February 2013, 10:08 PM #4
Do you guys have the same issues we do with mega banks? Ones that are so stinking big that if they tank they'll take down entire swaths of the economy with them? We used to have laws on the books both preventing banks from growing this large and separating investment and commercial banking, but alas, these protections were widdled away over the years.
By mattx in forum Jokes/Interweb Things
Last Post: 6th June 2011, 04:19 PM
By AngryTechnician in forum Internet Related/Filtering/Firewall
Last Post: 31st March 2011, 12:43 AM
By FN-GM in forum Educational IT Jobs
Last Post: 16th June 2010, 03:57 PM
By DaveP in forum Jokes/Interweb Things
Last Post: 10th March 2010, 10:29 PM
By mattmoo in forum General Chat
Last Post: 4th June 2008, 02:39 PM
Users Browsing this Thread
There are currently 1 users browsing this thread. (0 members and 1 guests)