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UK Mulls Over Negative Interest Rates, US to Keep Near Zero Rates for Years

The Bank of England is now seriously considering implementing negative interest rates while the U.S. Federal Reserve has pledged to keep interest rates near zero for years. Some analysts say even the Fed will soon consider negative interest rates. Meanwhile, many expect a boost to the price of bitcoin.

Central Banks Mull Over Negative Interest Rates

The U.S. Federal Reserve and the Bank of England made major announcements this week. Following its two-day policy meeting which concluded Wednesday, the Fed pledged to keep its key interest rate near zero until the economy reaches full employment and inflation runs “moderately” above its 2% goal for “some time.” Projections from individual members of the Federal Open Market Committee also indicated that rates could stay anchored near zero through 2023. “This was the first time the committee forecast its outlook for 2023,” CNBC conveyed.

In the U.K., the Bank of England voted unanimously on Thursday to leave the country’s main interest rate unchanged at 0.1%. Warning that the outlook for the economy remains “unusually uncertain,” the British central bank revealed its plans to explore how a negative interest rate could be effectively implemented.

Commenting on the two central banks’ announcements, Devere Group CEO Nigel Green warned that personal financial strategies should be “negative interest rate ready.” He explained that “the shifts have been seismic this year,” something that “would have been unimaginable even a few months ago.” As central banks struggle to “ease the economic pain” of the covid-19 pandemic, they have “ushered us into an era of almost zero interest rates,” he opined, elaborating:

Some experts [are] saying that the U.S. Federal Reserve and the UK’s Bank of England, amongst others, could be on the brink of implementing negative interest rates.

Among those who believe

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