‘Perversions ahead’ for Danish negative rate policy: Bloomberg

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Bloomberg
As host to the world’s longest-running experiment with negative interest rates, Denmark might well be expected to signal where all of this leads. In Bloomberg’s view? Nowhere good. “Consumers and businesses interpret such extreme policy as a sign of crisis with no predictable outcome” reports the New York-based financial news site, with writers Peter Levring and Frances Schwartzkopff adding that private sector savings are up while investments are trending lower. According to Copenhagen-based Sampension’s Kasper Ullegaard, the ultimate outcome of Denmark’s foray into negative rates “will have the opposite effect from the intended one […] they will curb lending rather than pushing borrowing”.

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