The head of Deutsche Bank believes that negative interest rates constitute an immediate danger to the economy, savings and pension funds.
CEO of Deutsche Bank, John Cryan warned of "fatal consequences" if the European Central Bank continues to lower interest rates. ECB keeps the rate on deposits -4%, government debt yields through large swaths of Europe are carrying negative rates as well.
According to John Cryan, monetary policy retains its goals to strengthen the economy and to make banks safer.
While intended to spur growth by directing money away from safe-haven investments, negative rates instead have spurred higher savings rates and economic unease among Europeans — essentially the opposite of their intended purpose. Japanese government debt up to 10 years in duration also carries negative yields.
John Cryan added that this negative rates-regime is working against the strengthening of the economy and the realization of a safer European banking system.
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