Are negative interest rates on the horizon?

RBS and Natwest customers could be charged negative interest rates, reports the Independent. If the Bank of England cuts the base rate to below zero, 1.3 million business and commercial banking customers could be charged for investing with these banks. ‘Global interest rates remain at very low levels and in some markets are currently negative. Dependent on future market conditions, this could result in us charging interest on credit balances,’ said a letter sent to the companies. Baroness Ros Altmann, the outgoing pensions minister, said that negative rates could be dangerous – if people withdraw money from banks and keep it at home they are more likely to be at risk of crime. The Bank of England was expected to cut the base rate on 14 July; however the Monetary Policy Committee voted overwhelmingly to keep it at 0.5 pc. A rate cut might come after the next meeting of the group in August.

Amazon has won approval from the government to test unmanned delivery aircraft, says the Telegraph, and will soon begin testing its drones in UK airspace.