Why Could Negative Interest Rates Fall Further?
Monetary policies set by the European Central Bank and the Bank of Japan impact the Federal Reserve’s path of interest rates, according to a report Fed Chair Janet Yellen presented to U.S. lawmakers. Yellen kept the door open for an interest-rate increase in March. Her comments come less than two weeks after the BOJ Governor Haruhiko Kuroda unexpectedly adopted negative interest rates, with ECB President Mario Draghi also considering more easing. Elga Bartsch, Morgan Stanley’s co-chief global economist, told Bloomberg’s Manus Cranny and Anna Edwards on “Countdown” she thinks rates could go further negative.