negative rates helped economy
Last Updated : GMT 05:05:27
Arab Today, arab today
Arab Today, arab today

Director Christine Lagarde:

Negative rates helped economy

Arab Today, arab today

Arab Today, arab today Negative rates helped economy

IMF Managing Director Christine Lagarde
Washington - Arab Today

The world economy would be worse off without negative interest rates, according to International Monetary Fund Managing Director Christine Lagarde.

Negative rates in Europe and Japan have helped support global growth and price gains, she said in Ho Chi Minh City on Friday. The finance sector may need to implement new business models as a result, she said.

"If we had not had those negative rates, we would be in a much worse place today, with inflation probably lower than where it is, with growth probably lower than where we have it," Lagarde said. "It was a good thing to actually implement those negative rates under the current circumstances."
Central banks in Europe and Japan have deployed negative interest rates to stimulate the economy, and Federal Reserve Chair Janet Yellen said the U.S. central bank is taking a look at the tool "in the event that we needed to add accommodation."

The policy moves have triggered concerns that they could have unintentional consequences such as hurting bank profits.

Negative interest rates are a fairly new economic tool and more time is needed to assess the policy, Lagarde said.

"So let's see whether it kick-starts the process of fueling credit to the economy, changing the behavioral pattern of people and changing the strategy of banks as well," she said. "It may be good for the economy — maybe not forever, but for a period of time."

Former Fed Chairman Ben S. Bernanke said in a blog post later on Friday that negative interest rates "appear to have both modest benefits and manageable costs" and that market anxiety over below-zero borrowing costs "seems to me to be overdone."

While the chances of the Fed going negative are low for the foreseeable future, the central bank should probably analyze the option further, he wrote.

Separately, Lagarde said the IMF may raise its 6.3 percent growth forecast for China due to the nation's planned economic reforms and stimulus. The figure could be increased "a little more" after an assessment of a recently announced economic package, she said.

"We believe China will continue to grow," Lagarde said. "If those reforms are implemented and the stimulus announced also directed to the most efficient leverage in societies, which we believe is more consumption than necessarily investment that would be fueled by credit, then the recipe should be quite good for China to lead a continued quality growth."

Chinese Premier Li Keqiang opened the annual National People's Congress by announcing this year's economic growth target would be 6.5 percent to 7 percent. He said in his work report to the ceremonial legislature that such a pace "will allow for relatively full employment."

Li also outlined plans to cut back inefficient industries and avoid mass layoffs while achieving growth targets that are challenged by rising debt and a global economic slowdown.

The debt levels in the blueprint raised concern among some analysts about the sustainability of China's economic growth.
Source: AFP

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

negative rates helped economy negative rates helped economy

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

negative rates helped economy negative rates helped economy

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today The Big Apple bike boom

GMT 10:47 2017 Wednesday ,22 November

The Big Apple bike boom
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Leaders of Russia, Iran, Turkey meet

GMT 10:12 2017 Wednesday ,22 November

Leaders of Russia, Iran, Turkey meet
Arab Today, arab today 'Advanced' cyber attack targets Saudi Arabia

GMT 10:18 2017 Wednesday ,22 November

'Advanced' cyber attack targets Saudi Arabia
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Honda recalls 800,000 minivans

GMT 11:43 2017 Wednesday ,22 November

Honda recalls 800,000 minivans
Arab Today, arab today VW says will invest over 34bn euros

GMT 07:19 2017 Tuesday ,21 November

VW says will invest over 34bn euros
Arab Today, arab today Singer Jahda Wahba has unlimited ambitions

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 09:23 2017 Saturday ,18 November

Fedra happy for “Between Two Worlds” success

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 13:41 2017 Tuesday ,21 November

French choke up over proposal

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday