A Financial Times story saying the European Central Bank has recivied warnings from 'some of Europe's most senior bankers' on the dangers of negative rates

  • ECB expected to cut its deposit rate by 10 basis points to minus 0.4%
  • Bank leaders are alarmed by the crippling effect on their profits of negative rates ... adding to concerns on financial stability in some parts of the Eurozone

The Financial Times (gated, but can be read with a free registration): Senior European bankers voice concerns over ECB cut


Its probably a reasonable case the bankers are making against negative rates,, but the 'they would say that wouldn't they' criticism will be leveled at them.

Moving beyond the ad hominem, though, I reckon there is a role for negative rates if a goal is to take unreasonable pressure off an appreciating currency, but as for giving an economy a boost .... mmm, maybe not.

(ps. This guy doesn't give a rat's what I think, neither should you ;-) )