Rising European savings could undermine case for negative rates
Share:
LONDON (Reuters) - As divisions grow at the European Central Bank over continued interest rate cuts, at least one indicator appears to side with policymakers who are arguing for tighter monetary policy: household savings rates.Interest rate doves -- policymakers who favour looser monetary policy to keep the economy moving -- argue that ever-lower interest rates disincentivise households from saving so that they spend and invest more.But policymakers and investors alike are beginning to question..