(MENAFN) Negative interest rates set by central banks in Europe and Japan to battle deflation are good for the international economy, stated the International Monetary Fund (IMF).
In particular, the unconventional negative short-term rates, in which commercial banks pay central banks to hold their money, had most likely supported and reinforced sturdier economic growth.
The EU Central Bank and the Bank of Japan have taken rates negative in the past year to spur commercial banks to push more of their surplus funds into the economy to generate more spending and investment.
"If we had not had those negative rates, we would be in a much worse place today, with inflation probably lower than where it is, with growth probably lower than where we have it," said the IMF's director.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.