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The negative rate cage fight

| Posted by: Paul Donovan | Tags: Paul Donovan

  • Bank of England governor Carney declared negative rates to be wrong. Fed vice-Chair Fischer declared negative rates to work. Which north American is right?
  • Negative rates work as a wealth tax. If the aim of negative rates is to change asset allocation, then they work. If the aim something else, the evidence is less compelling
  • Euro area consumer price inflation is due, after a weaker German read yesterday. The weaker German data was oil affected, however, and that will not last
  • The British cabinet gather together to decide how to exit the EU, at a time when more EU politicians are listing all the toys the UK cannot play if they leave the EU sandbox