Sub-zero rates get a thumbs down from finance gurus
A new study suggests 0% is more effective than sub-zero, with behavioural finance experts saying negative rates are seen as a sign of crisis
16 September 2020 - 16:53
London — Six years after the European Central Bank (ECB) cut interest rates below zero, behavioural finance gurus have a message for other central banks thinking about taking the plunge: don’t.
Rates in the US, Britain, Norway, Australia, New Zealand, Israel and Canada are at or below 0.25%, so chances are one or more of their central banks will go sub-zero to try and counter the pandemic-fueled economic funk...
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