BOE Plays Down Chance of Negative Rates on Virus Risks

The video discusses the structure of the banking industry, focusing on retail deposit rates and their resistance to going negative. It highlights the impact of retail funding on central bank policies and the importance of public communication regarding interest rates. The video also addresses the challenges of implementing negative interest rates, emphasizing the need for technical preparations and the importance of having such a tool available, even if its use is not imminent. The discussion concludes with a focus on readiness and managing public speculation.

What are the implications of having a high proportion of retail funding in a banking system?

How do public expectations affect the perception of negative interest rates?

What challenges are associated with implementing negative interest rates in the banking system?

What does the term 'tool bag' refer to in the context of monetary policy?

Why is it important to assess the financial system's preparedness for negative interest rates?