An article in the Sunday Times noted that.......>

BOE: An article in the Sunday Times noted that "Bank of England governor Andrew

Bailey has written to lenders warning them of the challenges negative interest

rates would bring. Bailey, who succeeded Mark Carney as the virus crisis was

taking hold in March, said that adapting to an unprecedented move into negative

territory, where the Bank would charge commercial lenders to store reserves,

would be "a significant operational undertaking for firms". He noted that many

would need 12 months to change computer systems, update financial contracts

designed for a world of positive interest rates and work out how to communicate

with clients. Bailey, 61, told the Treasury select committee in May that

negative rates were under "active review" - a U-turn on his previous position.

The letter sent last month, is a sign that the Bank is preparing the City for

the possibility of a shift into negative territory for the first time in its

325-year history."

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