IMF economists mount defence of negative interest rates despite controversy
But they say the ECB might need to look to other forms of monetary easing due to problems posed for banks
Add BT as a preferred source
Tokyo
THE introduction of negative interest rates some two years ago by the European Central Bank or ECB (and then by the Bank of Japan and the National Bank of Switzerland) has been an overall "success" despite the controversy it has generated, International Monetary Fund (IMF) economists said on Thursday.
In a blog published by the IMF, economists Andy Jobst and Huidan Lin acknowledge, however, that negative rates have caused problems for banks, and they suggest that the ECB at least might need to rely on other forms of monetary easing rather than push rates further into negative territory.
TRENDING NOW
Singtel Q1 gain drops 71% to S$818 million in absence of Airtel stake sale; weaker Singapore business
Sembcorp raises interim dividend despite 72% H1 profit slide to S$150 million on Alinta deal costs
How BYD disrupted Singapore’s car market – and why the strategy is turning on itself
CDL H1 profit jumps three times to S$301 million on strong condo sales, doubles interim dividend
