IMF deems negative rates to have had ‘no major side effects’


Negative interest rate policies that were introduced after the financial crisis have, so far, had “no major side effects” on banks or market function, according to a policy paper by the International Monetary Fund.

In the paper, staff from the fund analyse the relationship between unconventional monetary policy and bank’s behaviour, looking at the transmission and impact on bank profitability.

“Transmission to money market and bond yields has worked well. But deposit rates have mostly remained

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