Bank of England deputy governor Paul Tucker has said negative interest rates should be considered.
A negative interest rate would mean the central bank charges banks to hold their money and could encourage them to lend out more of their funds.
Speaking to MPs on the Treasury Committee, Mr Tucker said: “This would be an extraordinary thing to do and it needs to be thought through carefully.”
He said it was one of a number of ideas that he had put up for consideration.
“I hope we will think about whether there are constraints to setting negative interest rates,” Mr Tucker told MPs.