BOE Governor Warns Over Negative Interest Rates, Times Reports

The governor of the Bank of England, Andrew Bailey, has warned lenders of the challenges negative interest rates would bring, the Sunday Times reported.

Bailey said in a letter sent last month that adapting to a move into negative territory would be a “significant operational undertaking for firms,” according to the newspaper.

He said many would need a year to alter computer systems, update contracts designed for an environment of positive rates and work out how to communicate with clients, the Times reported.

The letter is a sign that the bank is preparing the City for the possibility of a shift into negative territory for the first time in its 325-year history, the newspaper said.

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