Saturday, March 6, 2021

The Evidence is in NIRP (Negative Interest Rate Policy)

 Excerpt from the IMF Blog:

"In sum, the evidence so far indicates negative interest rate policies have succeeded in easing financial conditions without raising significant financial stability concerns. Thus, central banks that adopted negative rates may be able to cut them further. And those non-adopting central banks should not rule out adding a similar policy to their toolkit—even if they may be unlikely to use it.

Ultimately, given the low level of the neutral real interest rate, many central banks may be forced to consider negative interest rate policies sooner or later."










Image credit - IMF

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