- ECB's executive board member Schnabel: Negative interest rate policy has been successful
Market news
26 August 2020
ECB's executive board member Schnabel: Negative interest rate policy has been successful
- Negative rates can have side effects on bank profitability, risk-taking behaviour
- Past few years suggest that positive effects have dominated
- Side effects are likely to become more relevant over time though
- The pandemic is a wake-up call for governments to foster innovation, growth
- There is considerable uncertainty with regards to precise level of 'reversal rate' and current estimates suggest that the ECB has not reached effective lower bound
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