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 …