THE pound has plummeted today after the Bank of England hinted that it could implement negative interest rates.
The central bank today agreed to hold the base rate at a record low of 0.1 per cent but added that it may drop below zero in the near future.
The pound fell around 0.1% against the dollar and euro following the announcement.
The Bank said today: “The Committee had discussed its policy toolkit, and the effectiveness of negative policy rates in particular, in the August Monetary Policy Report, in light of the decline in global equilibrium interest rates over a number of years.
“Subsequently, the MPC had been briefed on the Bank of England’s plans to explore how a negative Bank Rate could be implemented effectively, should the outlook for inflation and output warrant it at some point during this period of low equilibrium rates.
“The Bank of England and the Prudential Regulation Authority will begin structured engagement on the operational considerations in quarter four.”
More to follow…
For the latest news on this story keep checking back at Sun Online.
Thesun.co.uk is your go to destination for the best celebrity news, football news, real-life stories, jaw-dropping pictures and must-see video.
Download our fantastic, new and improved free App for the best ever Sun Online experience. For iPhone click here, for Android click here.
Like us on Facebook at www.facebook.com/thesun and follow us from our main Twitter account at @TheSun.
PRICE IS TIGHT
London’s narrowest home that is only 5ft 5in wide on sale for almost £1M
BAG A BARGAIN
Exact date to buy popular Christmas gifts revealed – it could save you £100s
Asda launches massive toy sale with up to 50% off hundreds of toys
Morrisons shoppers ‘disgusted’ to find bags of ‘wet eggs’ in supermarket
MUM’S THE WORD
George at Asda launches a massive baby sale including 55% off Tommee Tippeee