The impact of negative interest rates

20 Sep 2016

Patrick Er, Research Manager – Cash, Fixed Income and Currency, Macquarie Investment Management

Negative interest rates are becoming increasingly common in the global economy as central banks struggle to effectively manage the persistent low growth environment. However, as interest rates begin to enter negative territory, there are many broad and serious implications that need to be considered. Our research looks at the implications of negative rates on three key areas – banks, financial markets and economies. We find that thus far, the evidence suggests the impacts of negative rates are largely negative.

Download full paper