Is the BoE heading for negative interest rates?

[scooterscot]

Of course it could never happen. Not the pound. It's not a basket case currency like the Euro, no Sir. This is after all the pound we're talking about.

Me technical charts aside... I'm asking myself, what if? Have any of you asked yourself the what if? I don't think anyone is prepared for this let alone has the know how on how to act when it happens. And when its clear.. everyone will be trying the same action at the same time.

If you've got cash in the bank you're literally going to watch it deplete day by day until it reaches zero with negative interest rates.

What's your plan on something that could not possibly happen?


BoE's Carney says negative rates not an option for UK

Bank of England Governor Mark Carney said he did not think negative interest rates were an option for the British economy at the moment, in comments published on Monday.

“At this stage we do not see negative rates as an option here. I am not criticising others that have used them, but we don’t see it as an option,” Carney told website Central Banking.


Carney also called on France and Germany to take action to ensure that uncleared derivative contracts can function smoothly after Brexit, due to take place on Oct. 31.


Central Banking said it interviewed Carney on Aug. 1, the date he gave a news conference after the BoE published its latest Inflation Report.

[TwoWolves]

Done that.

https://www.contractoruk.com/forums/...k-england.html

[scooterscot]

nah... that thread was not exactly what I'm meaning. This is about negative interest rates reducing the worth of your labour. Imagine, your salary is paid into your account month on month. With each month the bank takes more and more away away, in effect your labour become worthless.

[BrilloPad]

in effect your labour become worthless.

I can't imagine that. So please tell us from your experience. Trying not to use the worth "Heathrow", "Thistle" or "Bitcoin".

[TwoWolves]

Like a tax, you mean?

Or inflation?

You do understand the reason for NIRP and who the primary beneficiaries are don't you?

To quote a recent popular film, this is the endgame. The endgame of a political and ideological order that is falling apart under the weight of it's contradictions and failures.

[NotAllThere]

Of course it could never happen. Not the pound. It's not a basket case currency like the Euro,

Or the Swiss France, Danish Kroner,...

[scooterscot]

Like a tax, you mean?

No. This is far different. This is in effect a tax on income that has already been taxed. Expect the taxed income is repeatedly taxed every day until the balance is equal to zero.

Amazing to see so much of the world sleepwalking into this situation.

[NotAllThere]

With each month the bank takes more and more away away,

So buy bitcoin and this time next year, you'll be a billionaire.

[ShandyDrinker]

While I have little doubt that many countries would love negative interest rates, it won't happen until cash is banned which, as many observers point out, puts the floor on interest rates at zero percent.

If you ban cash, your pesky populace can't then just go and withdraw it all. Sure, you can look at bitcoin or say gold, but they certainly aren't as liquid as cold hard cash.

Some interesting links:

• Banning cash so you pay the bank to hold your money is what the IMF wants - ABC News (Australian Broadcasting Corporation)
• Enabling Deep Negative Rates to Fight Recessions: A Guide

Food for thought and in my opinion absolutely terrifying.

[scooterscot]

I can't imagine that. So please tell us from your experience. Trying not to use the worth "Heathrow", "Thistle" or "Bitcoin".

Exactly. And neither can I. Nonetheless many indicators are pointing towards this happening. And I'm wondering, has this happen before? Yes, and it's not pretty.

Switzerland Tried Negative Rates in the 1970s. It Got Very Ugly

Because you can't imagine it, doesn't mean it can't happen. Especially when a private institution answers to no one.