David Jane: Are we about to see UK rates fall to zero?

Are we about to see UK rates fall to zero? Such a question might have seemed like a fabulous speculation some years ago yet it becomes a little less absurd when we see the entire German government bond market yielding less than nothing. Since the recent US rate cut and the eurozone's renewed commitment to easy money, there has been a huge downward shift in yields in most developed government bond markets. This has led to renewed talk of the absurdity of negative-yielding bonds. It also leads us to question whether the policy of ultra-low interest rates is achieving any desirable policy g...