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Nowotny: Negative Interest Rate Conveys Feeling of Crisis

Published: February 18, 2014; 11:04 · (Vindobona)

Ewald Nowotny, member of the Council of the ECB (European Central Bank) and governor of the Austrian National Bank (OeNB), expressed his rejection regarding a possible negative interest rate for banks.

Nowotny: Negative Interest Rate Conveys Feeling of Crisis / Picture: © Wikipedia / Christian Wirth (Wirthi)

He does not consider this measure to lead to an increased lending activicy among banks, Nowotny announced during an event in London. Moreover, a negative interest rate could have a negative psychological side effect and convey the feeling of a crisis among citizens even though there was no such thing.

Earlier Nowotny said that a negative interest rate was a possible instrument by…

This article includes a total of 212 words.

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