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How will negative interest rates work in practice? Will they always be confined to bonds, or will they spill over into interbank lending or even retail debt?
by davedx 7y ago
How will negative interest rates work in practice? Will they always be confined to bonds, or will they spill over into interbank lending or even retail debt?
- throw0101a 7y agoGenerally speaking, we don't know. The financial sector has never had been in this situation before. > While the ECB wants to spur people to invest, there’s concern that the banks will face mass withdrawals if they introduce negative interest rates for retail clients. * https://www.bloomberg.com/news/articles/2019-08-25/germany-in-uproar-as-negative-rates-threaten-saving-obsession https://www.bloomberg.com/news/articles/2019-08-25/germany-i... > Jyske Bank A/S this week said it will charge Danish depositors with 7.5 million kroner ($1.1 million) or more in their accounts; earlier this month, UBS Group AG halved the level at which its annual 0.6% fee kicks in to 500,000 euros ($560,000). * https://ca.finance.yahoo.com/news/negative-rates-coming-savings-050005475.html https://ca.finance.yahoo.com/news/negative-rates-coming-savi...