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Negative rates are here to stay as debt levels ramp up

David Chance


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Clouds on the horizon: The European Central Bank HQ in Frankfurt

Clouds on the horizon: The European Central Bank HQ in Frankfurt

Clouds on the horizon: The European Central Bank HQ in Frankfurt

If it was a shock last week when Bank of Ireland announced it would start charging pension funds to hold funds on deposit, it should have not have been a surprise.

It appears more likely that not that there will be more similar announcements.

With governments racking up spending and debt at an unprecedented rate in response to the coronavirus pandemic, central banks across the world are going to be called upon to keep a lid on interest rates long after the initial shock is over - for fear of triggering a debt crisis.