Negative Interest Rates...

Malkytheheed

So, The US have hinted at it.
Could well happen here too. 
If we do end up in a situation of Negative interest rates then how to maximise the situation presonally? Our savings are doing nothing at that point, we may even have to pay to keep them in the bank. But what about getting interest free loans or even being paid to take a loan. How to use this to our advantage financially? 

ColdIron

Existing thread

https://forums.moneysavingexpert.com/discussion/6142669/negative-interest-rates/p1

RG2015

Traders bet on Bank of England launching negative interest rates

Mon 18 May 2020

Traders are betting that the Bank of England introduces negative interest rates for the first time ever, pushing the pound to a three-week low today.

Interest rate futures contracts from December dipped into negative territory today as the money markets speculated that British interest rates would fall below zero in the coming months.

Comments by Andy Haldane, the Bank of England’s chief economist, over the weekend fuelled speculation that Bank policymakers are not opposed to using that option.

https://www.cityam.com/traders-bet-on-bank-of-england-pushing-interest-rates-below-zero/

RG2015

There is a lot of speculation on this at the moment but that is all it is. For example, Donald Trump apparently thinks it may be a good idea.

But he is also taking Hydoxychloroquine to stop him contracting Covid-19 or to cure him if he gets it.

DiggerUK

The BOE could introduce negative or zero base rates, there is no legal impediment to prevent them doing so.
However this is not allowed under the laws that incorporated the Federal Reserve. They have to maintain "moderate long-term interest rates" 
Trump is forever griping about the disadvantage with other countries ability to manipulate base rates in ways the USA can't..._

Zanderman

And, to repeat Coldiron's point above.  Existing thread on this subject is here:
https://forums.moneysavingexpert.com/discussion/6142669/negative-interest-rates/
No need for another one.  Perhaps they could be combined. 

DiggerUK

The two threads are fundamentally different. 

One is discussing what should be done if personal savings and current accounts offer zero/negative rates, the other the effect of Central Banks adopting zero/negative rates..._

Zanderman

DiggerUK said:

The two threads are fundamentally different. 

One is discussing what should be done if personal savings and current accounts offer zero/negative rates, the other the effect of Central Banks adopting zero/negative rates..._

That is a point of view.
But in that case the thread titles need to be altered - they look the same.
And because they look the same people will - in due course - post any discussion in either.
So they might as well be combined.

DiggerUK

Stay Alert..._

jsinc

The UK just sold £3.75 billion of a July 2023 conventional bond at a negative nominal yield of -0.003%

https://www.dmo.gov.uk/media/16554/200520conventional.pdf

DiggerUK

Bonds are nothing to do with central bank base rate. Negative interest rates are a different kettle of fish to negative government  bonds..._