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Negative Interest Rates Are Working Just Fine So Far: BIS

  • Study finds few negative effects on money markets or cash use
  • Pass-through of mildly negative rates similar to normal rates

Negative interest-rate policies currently in use by central banks around the world have worked through their respective systems in much the same way as positive rates, though it’s not known how far below zero that would continue to be the case, the Bank for International Settlements said.

In its quarterly report published Sunday, the Basel-based “central bank for central banks” said that “so far, zero has not proved to be a technically binding lower limit for central bank policy rates.”