What to expect from negative interest rates

Mon, 09 Nov 2020

Three things are certain if the Reserve Bank goes ahead with its threat to take the official cash rate negative: the banks will go kicking and screaming, the already poor deal for savers will get worse and there will be unintended consequences.Westpac chief executive David McLean reiterated his bank's opposition to negative interest rates last week, saying "there are other tools in the Reserve Bank tool-kit that are more effective," although he said his bank will be ready for them by the RBNZ's Dec. 1 deadline.Former Westpac t...

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