⁍ Tenreyro said she did not expect Britain to continue to enjoy a fast V-shaped recovery.

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⁍ Britain’s central bank said in August that it was taking a closer look at the case for cutting interest rates below zero.

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– The Bank of England is taking a closer look at the idea of charging banks for holding deposits, Reuters reports. The central bank said in August that it was looking into the possibility, and in September it said it would take a detailed look at the technical feasibility during the fourth quarter. Britain’s central bank said in August that it was taking a closer look at the case for cutting interest rates below zero, and in September it said it would take a detailed look at the idea’s technical feasibility during the fourth quarter. However Governor Andrew Bailey said this did not mean the BoE was committed to going ahead with the idea, which would potentially see people charged for holding deposits with banks. Tenreyro said evidence from the euro zone and Japan showed that cutting interest rates below zero had succeeded in reducing companies’ borrowing costs and did not make it unprofitable for banks to lend. “The evidence has been encouraging,” she said, adding that cuts in interest rates below zero had been almost fully reflected in reductions in interest rates charged to borrowers. “Banks adapted well—their profitability increased with negative rates largely because impairments and loss provisions have decreased with the boost to activity and the increase in asset prices.”