Today, the ECB will meet to discuss its monetary policy and it as virtually certain that the Governing Council will cut interest rates into negative territory (and lower the deposit rate even more into negative territory). The goal of lowering interest rates is obviously to reduce the cost of borrowing and incentivise banks to lend more to businesses and households. But the evidence keeps mounting that this may be exactly the opposite of what is happening as I have noted
Banking in a negative rate environment
Banking in a negative rate environment
Banking in a negative rate environment
Today, the ECB will meet to discuss its monetary policy and it as virtually certain that the Governing Council will cut interest rates into negative territory (and lower the deposit rate even more into negative territory). The goal of lowering interest rates is obviously to reduce the cost of borrowing and incentivise banks to lend more to businesses and households. But the evidence keeps mounting that this may be exactly the opposite of what is happening as I have noted