Poloz on Negative Rates: They Taste Bad But Will Work in a Pinch

  • Monetary policy becomes less effective as rates move to zero
  • Low borrowing costs are still helping offset severe headwinds

Bank of Canada Governor Stephen Poloz said negative interest rates may have minimal impact on growth and are even disliked by policy makers pressed into using them, however they’re still an option if the economy needs a jolt.

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