LONDON, Jan 21 (Reuters) - The Bank of England is due to publish on Feb. 4 feedback from banks about what negative interest rates would mean for their operations, a first stage of the BoE’s consideration of the pros and cons of taking borrowing costs below zero. Members of the BoE’s nine-strong Monetary Policy Committee have expressed differing views on whether negative rates - something already used by central banks in the euro zone, Japan and other countries - would help or hinder the British economy. Britain’s large banking industry relies heavily on household deposits and some bankers have warned that negative rates would hurt them and potentially the economy. Below are comments from members of the BoE’s Monetary Policy Committee. INTERNAL POLICYMAKERS ANDREW BAILEY, GOVERNOR Bailey said on Jan. 20 that when rates were close to zero, and in particular when they were negative, it changed the “whole calculus of how the banking system works” and “we do not know, with any confidence, how that would work.” But evidence from other countries showed negative rates could work in certain circumstances and depending on the characteristics of the financial systems involved. On Jan. 12, Bailey said there were “a lot of issues” with negative rates. BEN BROADBENT, DEPUTY GOVERNOR Broadbent said on Jan. 12 that the key judgement about negative rates was about how they would affect bank lending. On Nov. 6 he said there was a risk that banks would cut lending to make up for costs and lower margins. “Then the question is: are those pressures enough to mean that these mitigating effects - the downside risks of cutting rates below zero - outweigh the benefits?” ANDY HALDANE, CHIEF ECONOMIST “We at the Bank are doing work to ensure that that tool is in the toolbox. That is not remotely the same as saying that we are about to deploy that tool. That will depend on the balance of costs and benefits,” Haldane said on Oct. 22. He has recently talked about the prospect of a sharp recovery in Britain’s economy as vaccines are rolled out. DAVE RAMSDEN, DEPUTY GOVERNOR Ramsden said on Nov. 17 that the BoE was not close to cutting rates below zero: “They’re not something that we’re taking out of the toolbox and applying to the UK at present.” He previously talked about the risks of “knock-on economic effects through the banking system.” JON CUNLIFFE, DEPUTY GOVERNOR In June, he said the BoE should not be dogmatic about using negative rates but there were “acute” issues for the financial sector. Negative rates had led to confusion among companies and households in areas where they had been used. EXTERNAL MPC MEMBERS SILVANA TENREYRO, EXTERNAL MPC MEMBER Tenreyro said on Jan. 11 that sub-zero rates could boost the economy more than expanding bond purchases. On Dec. 4 she said they had helped other economies in Europe and commercial banks because fewer loans went bad, offsetting the hit from rate margins. MICHAEL SAUNDERS, EXTERNAL MPC MEMBER “In my view, there may be some modest scope to cut Bank Rate further but, if we do, it may be preferable to move in relatively small steps,” he said on Dec. 4. GERTJAN VLIEGHE, EXTERNAL MPC MEMBER The BoE may need to ramp up its stimulus programme including a possible cut in rates below zero, Vlieghe said on Dec. 18. “Once we talk about adding significant stimulus to the economy, then the rate cut we can do without going negative is obviously very small,” he said. JONATHAN HASKEL, EXTERNAL MPC MEMBER Haskel said on Oct. 12 that the BoE had an open mind about negative rates. “(There is) some very, very good work there which... suggests some positive evidence that negative rates have benefited the economy,” he said. “That said, the effectiveness is probably going to be contingent on the structure of the financial system and the position where we are in the cycle, so we have to look at that very carefully.” (Reporting by Andy Bruce, David Milliken and William Schomberg; Editing by Toby Chopra)