The only thing preventing it (across Europe), is system limitations in a lot of banks. Those pesky mainframes that don't understand a minus sign...Makes you wonder if we might yet see negative retail rates.
Wow, yeah, bad news for me. 0.1% for a 12-month deposit and 0.05% for 31-day notice. Their rates have gone from derisory to completely pointless. Makes you wonder if we might yet see negative retail rates.
The only thing preventing it (across Europe), is system limitations in a lot of banks. Those pesky mainframes that don't understand a minus sign...
And the fact that there'd be bank runs immediately by retail customers
as they ran to the bank across the road?
as they ran to the credit unions, who immediately deposit it back in the bank across the road?
as they rushed to buy a bigger mattress?
And the fact that there'd be bank runs immediately by retail customers
... as soon as there was negative interest rates I'd withdraw every penny and put it in a different asset class. I'm sure lots of others would do similar.
...as soon as there was negative interest rates I'd withdraw every penny and put it in a different asset class. I'm sure lots of others would do similar.
That's the point of negative rates - on a macro scale
Was the point not to encourage lending/borrowing and thus business investment and expansion along with encouraging consumer spending and the unwanted effect was asset bubbles. Or maybe the desired effect all along was asset inflation......................................
Moving money away from savings, and towards other assets such as bonds and equities, provides cheaper sources of finance to businesses that they can use to invest.
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