Despite existing global economic perils, the International Monetary Fund supported the decision of some of the world’s central banks to levy negative interest rates.
The institution, in a report before its meetings in Washington, said such an action would help in alleviating lending situations and bolstering monetary stimulus. Some central banks, including the European Central Bank, pushed deposit rates into negative territory.
According to Jose Vinals, IMF’s Director of Monetary and Capital Markets and Financial Counselor, negative rates would beef up demand and price stability. But critics called it a desperate move.
The material has been provided by InstaForex Company – www.instaforex.com