‘Negative rates are not the answer’ for Britain’s slumping economy—yet

Cutting interest rates below zero is the last policy option that Bank of England officials would currently choose, according to Barclays.

Renewed asset purchases, potentially with a tilt toward riskier assets, are likely to be the central bank’s first choice, Barclays economists wrote in a report published Tuesday. They expect a further 100 billion pounds ($120 billion) of quantitative easing in June.

After that, the BOE could cut the Term Funding Scheme rate below zero for bank lending and ease accounting or capital rules to reduce the cost of making loans and bolster credit supply, the report said. Yield curve control, with