Carney airs scepticism on negative rates

Bank of England governor warns they could result in a ‘zero sum game’

Bank of England (BoE) governor Mark Carney warned the use of negative interest rates could result in a "zero sum game", in a speech in Shanghai today (February 26).

Speaking as the G-20 meetings commenced, Carney stressed the importance of pursuing structural reforms. "The global economy risks becoming trapped in a low-growth, low-inflation, low-interest rate equilibrium," he said.

Carney argued the claim "central banks are out of monetary policy ammunition" was "wrong". Low real rates had

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