1.
NEGATIVE INTEREST
RATES MAY HURT
EUROPEAN CENTRAL
BANK
Originally posted on telegraph.co.uk
Created by: Manisha Dorawala

2.
Deutsche Bank's chief executive has
warned of the "fatal consequences" of
the European Central Bank's negative
interest rate policy, which he said
punished savers and could even
undermine the recovery.

3.
John Cryan said the ECB's decision to
cut its deposit rate to a record low of
-0.4pc and an escalation of its bond-
buying programme was “working
against the goals of strengthening the
economy and making the European
banking system safer.”

4.
In an article for German newspaper
Handelsblatt, he said: “Monetary
policy is thwarting goals to strengthen
the economy and to make banks safer
by now”.

5.
While Mr Cryan praised the central
bank for helping to revive the
economy following the financial crisis,
he said low rates had dire implications
for savers and pension plans.

6.
Mr. Cryan said the policies also
encouraged companies to "refrain
from investments due to ongoing
uncertainty".

7.
Larry Fink, the chairman of Blackrock,
the world's largest asset manager, has
also described the growing trend of
negative interest rates as a “worrying”.
He said the policy had "potentially
dangerous financial and economic
consequences" as investors take bigger
risks to generate returns.

8.
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