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Deutsche Bank, UBS CEOs Criticize Impact of Negative Rates

  • Christian Sewing says more rate cuts unlikely to help economy
  • UBS CEO says European banks are facing an “absurd situation”
Christian Sewing at the Handelsblatt Banking Summit in Frankfurt on Sept. 4.

Christian Sewing at the Handelsblatt Banking Summit in Frankfurt on Sept. 4.

Photographer: Alex Kraus/Bloomberg
Updated on

Europe’s top banking executives ratcheted up criticism of negative interest rates ahead of a key European Central Bank meeting, warning of severe consequences to asset prices and the broader economy.

Deutsche Bank AG Chief Executive Officer Christian Sewing warned that more monetary easing by the European Central Bank, as widely expected next week, will have “grave side effects” for a region that has already lived with negative interest rates for half a decade. UBS CEO Sergio Ermotti struck a similar note, arguing negative rates are hurting social systems and savings rates.