Bank of England rate setter backs negative interest rates

Silvana Tenreyro says economic recovery from Covid-19 needs cheaper loans

A mortgage that allows home buyers to pay back less than they borrowed came a step closer after Bank of England rate setter Silvana Tenreyro backed the early adoption of negative interest rates to boost the struggling economy.

Tenreyro, a member of Threadneedle Street’s nine-strong monetary policy committee, said there were “encouraging” signs that previous barriers to cutting interest rates to below zero no longer applied.

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