We recognise that a negative policy rate could have wider implications for your firm’s business and your customers. The Bank and PRA will consider the wider business implications, including on financial stability, safety and soundness of authorised firms and pass-through to the wider economy. This letter, however, is seeking information to understand firms’ operational readiness and challenges with potential implementation, particularly in terms of technology capabilities.
Responding to this letter and the structured survey questions attached will help us and firms to identify whether there are any technical operational challenges associated with the implementation of a zero or negative Bank Rate, and to consider how best to prepare and prevent any unintended operational disruption that could be associated with a change should the MPC decide it was appropriate.
The full letter is available at https://www.bankofengland.co.uk/-/media/boe/files/prudential-regulation/letter/2020/info-request-operational-readiness-policy-rates.pdf