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MNI BRIEF: BOE Saunders Floats Dual Rate Idea

LONDON (MNI)

The Bank of England could adopt a dual rate structure to facilitate a move below zero, Monetary Policy Committee member Michael Saunders posited Friday. Saunders noted "with interest the concept of a dual interest rate structure," pointing to the European Central Bank's TLTRO with an interest rate below deposit rate for lenders meeting certain targets.

One possibility for the UK would be setting the interest rate for the term funding scheme for smaller businesses, the TFSME, below Bank Rate, Saunders said.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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