Paul Tucker attempts to spice up British monetary policy

Negative interest rates are like candy floss to central bankers, it is believed.

In the midst of his testimony to the treasury select committee, Bank of England deputy governor Paul Tucker gave a suggestion that Britain might be considering some unorthodox monetary policy of its own:

I hope we’ll think about whether there are constraints to setting negative interest rates. This would be an extraordinary thing to do and it needs to be thought through very carefully.

Such a move would be unlikely to affect the Bank's base rate. While we still have cash, that rate is pretty firmly stuck at the zero lower bound, because savers will always be able to withdraw savings as cash and horde it that way, safely out of reach of the banks trying to charge interest on their money.

Instead, it would be the rate paid on the Bank's overnight deposits which would be hit. This is the sum the Bank pays to other banks which leave their money with the Bank of England. It's basically the interest rate the Bank charges when it's actually acting like a bank. It can get away with it because, while withdrawing your savings and stuffing them under a pillow may work for you or I, it's less of an option for Halifax or HSBC.

The Financial Times' David Keohane thinks that the statements, which echo suggestions in the minutes of the monetary policy committee released last week, could be an attempt to talk down the value of the pound. Keohane writes:

Throwing around the negative interest rates idea has become very trendy all of a sudden with Draghi, Praet and Constancio weighing in and, we'd argue, using the threat to substitute for policy impotence.

Was Bank of England deputy governor Paul Tucker doing the same thing? Using a jedi-trick to talk down sterling perchance?

Of course, as Keohane points out, if that was the aim, it didn't do a whole lot of good. The effect of Tucker's words is almost lost in the general volatility of the market today:

Maybe the Bank of England is just feeling a little bit jealous of its Japanese counterpart? After all, they're gearing up to do all kinds of cool new things with monetary policy — Foreign bond purchases! Stock exchange targeting! Capital stock nationalisation using the profits of quantitative easing! — while we're stuck with boring old open market policy, where a chart from eight months ago is still accurate.

Continuing the theme of literally illustrating metaphors, this is a picture of some spices. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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The private renting sector enables racist landlords like Fergus Wilson

A Kent landlord tried to ban "coloured people" from his properties. 

Fergus Wilson, a landlord in Kent, has made headlines after The Sun published his email to a letting agent which included the line: "No coloured people because of the curry smell at the end of the tenancy."

When confronted, the 70-year-old property owner responded with the claim "we're getting overloaded with coloured people". (He later denied he was racist and said it was a matter of economics.) The letting agents said they would not carry out his orders, which were illegal. 

The combination of blatant racism, a tired stereotype and the outdated language may make Wilson seem suspiciously like a Time Landlord who has somehow slipped in from 1974. But unfortunately he is more modern than he seems.

Back in 2013, a BBC undercover investigation found 10 letting agent firms willing to discriminate against black tenants at the landlord's request. One manager was filmed saying: "99% of my landlords don't want Afro-Caribbeans."

Under the Equality Act 2010, this is illegal. But the conditions of the private renting sector allow discrimination to flourish like mould on a damp wall. 

First, discrimination is common in flat shares. While housemates or live-in landlords cannot turn away a prospective tenant because of their race, they can express preferences of gender and ethnicity. There can be logical reasons for this - but it also provides useful cover for bigots. When one flat hunter in London protested about being asked "where do your parents come from?", the landlord claimed he just wanted to know whether she was Christian.

Second, the private rental sector is about as transparent as a landlord's tax arrangements. A friend of mine, a young professional Indian immigrant, enthusiastically replied to house share ads in the hope of meeting people from other cultures. After a month of responding to three or four room ads a day, he'd had just six responses. He ended up sharing with other Indian immigrants.

My friend suspected he'd been discriminated against, but he had no way of proving it. There is no centrally held data on who flatshares with who (the closest proxy is SpareRoom, but its data is limited to room ads). 

Third, the current private renting trends suggest discrimination will increase, rather than decrease. Landlords hiked rents by 2.1 per cent in the 12 months to February 2017, according to the Office for National Statistics, an indication of high demand. SpareRoom has recorded as many as 22 flat hunters chasing a single room. In this frenzy, it only becomes harder for prospective tenants to question the assertion "it's already taken". 

Alongside this demand, the government has introduced legislation which requires landlords to check that tenants can legitimately stay in the UK. A report this year by the Joint Council for the Welfare of Immigrants found that half of landlords were less likely to rent to foreign nationals as a result of the scheme. This also provides handy cover for the BTL bigot - when a black British tenant without a passport asked about a room, 58 per cent of landlords ignored the request or turned it down

Of course, plenty of landlords are open-minded, unbiased and unlikely to make a tabloid headline anytime soon. They most likely outnumber the Fergus Wilsons of this world. But without any way of monitoring discrimination in the private rental sector, it's impossible to know for sure. 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.