When political campaigns go negative things gets very ugly. Why would we think it turns out differently when it comes to interest rates ? But, for central banking, there’s nowhere left to go…
from Business Day
GLOBAL equity markets suffered a tumultuous start to 2016, with a confluence of factors seeing market participants hit the “risk-off” button. Among these factors was the continued decline in both growth and inflation expectations. As central banks have exhausted more traditional monetary policy tools, they have had to look to more unconventional methods to achieve their mandated goals. One such method is negative interest rate policies which the central banks of Sweden, Denmark and Switzerland have all adopted for some time now.