“Although we do not expect to see negative interest rates in the UK, if this did actually happen, it could have a number of far-reaching consequences for consumers, businesses and banks as well as the economy,” he said.
“We actually doubt the BoE will cut interest rates below zero. Instead, further expansions in QE are possible, with the BoE continuing to indicate that interest rates will remain on hold for some time.
“In terms of what could happen next, to support the economy, the BoE could continue to buy more bonds.
“This can lower borrowing costs and encourage lending without moving the base rate into negative territory.”