With the Bank of England’s interest rate already set at a historic low of 0.1% (since 19 March 2020), the letter indicates that a once-unthinkable decision to cut the rate to zero, or even below zero, may be around the corner.
A decision to turn the Bank of England’s interest rate negative would create a strange, upside-down world in which commercial banks will be charged for depositing money with the Bank of England. Commercial banks may, in turn, pass these charges on to savers who could see the money they hold in savings accounts start diminishing in nominal and real terms. Although this would undoubtedly be bad news for savers, the flip-side is that short-term interest rates (such as building society mortgage rates) may also fall and the cost of borrowing is subsequently likely to reach an all-time low – and an interest rate of “zero” would really be an all-time low.
https://www.propertyreporter.co.uk/finance/sub-zero-will-negative-interest-rates-heat-up-the-uk-housing-market.html?SRC=MC