It is too easy to suspect that the wider politicization of monetary policy in Europe influences some bankers’ attacks on negative rates – in addition to their own self-interest – and particularly in Germany.
In fact, monetary easing hasn’t just lowered the southern states’ borrowing costs, it has also helped prop up Germany’s manufacturing sector through a lower exchange rate.
However, there is a valid question – understandably glossed over by much of the European Central Bank’s research – about how the effectiveness of negative rates varies not just between banks but also between countries.
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
