Economics
Ex-BOE’s Mervyn King Warns of Cash Hoarding If Rates Cut Below Zero
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Former Bank of England Governor Mervyn King said there’s a risk people will pull their money out of their accounts to stash it at home if interest rates are cut below zero.
His warning comes as the central bank assesses whether U.K. financial institutions can implement negative rates without damaging their business, or whether such a move would backfire by depressing consumer confidence.