IMF says negative rates a "net positive" for economies

[WASHINGTON] Negative interest rates are a "net positive" for economies where they are deployed, but there are limits to how low they can go, the International Monetary Fund's monetary and capital markets chief said on Wednesday.

Jose Vinals told a news conference that banks may see some short-term reductions in profitability, but will benefit from repricing of assets that they hold, such as government bonds, and will benefit from the stronger macroeconomic environment that they will produce.

REUTERS