DBS CEO underscores psychological impact of negative rates

Singapore

THE negative interest rate environment in two-thirds of the world, including most of Europe and Japan, are spooking global markets not just because of its impact on the financial sector - below zero rates hurt banks' profitability - but it also affects the "psychology" on what it means for the future of the global economy, said DBS chief executive Piyush Gupta.

This is a "fundamental" issue that requires careful consideration. "Why is there negative interest rates? How does one deal with it? And what does this portend for the future of the global economy?", said Mr Gupta in his welcome address at the sixth DBS Asian Insights Conference 2016 in Singapore on Thursday.