Negative Rates Just Got Real for a Record Group of Bank Clients
A Jyske Bank A/S bank branch in Copenhagen, Denmark.
Photographer: Freya Ingrid Morales/Bloomberg
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In the country with the longest history of negative interest rates, a commercial bank just decided to share the cost of the monetary policy with the largest group of retail clients yet.
Jyske Bank A/S, which recently made headlines by offering the first 10-year mortgage at negative coupons, said it had no choice but to drag more retail depositors into its negative-rate plight after Denmark’s central bank cut its policy rate to minus 0.75%. Analysts were quick to point out that the development will help central bank policy feed through to the broader economy.