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Negative rates could help UK economy through FX, asset prices - BoE's Tenreyro

LONDON, Nov 30 (Reuters) - Bank of England policymaker Silvana Tenreyro said a cut in the central bank’s interest rate to below zero could help Britain’s economy via a weaker exchange rate and higher asset prices, as well as increased bank lending.

“The evidence we have from Europe and other European countries (that have cut rates below zero) is that the lending channel of the transmission of monetary policy has worked,” Tenreyro told the Resolution Foundation think tank.

“And apart from the bank lending channel I would expect the other channels to also work well - the exchange rate channel, and the wealth or asset price channel.” (Writing by William Schomberg, editing by David Milliken)

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