05/01/2016 - Everbank VP: First ZIRP, Then QE .. Will NIRP Be Next In The U.S.?
Everbank’s VP considers the progression of financial repression in the U.S. – from zero interest rate policy to quantitative easing to the increasing potential for negative interest rates .. “In response to disappointing growth, many central banks are testing a new monetary tool: NIRP. The European Central Bank (ECB) was the first major institution of its kind to adopt NIRP. Others have joined the party. Sweden, Denmark, Switzerland and Japan have also adopted sub-zero rates.2 In fact, around a quarter of the world economy by output is now experiencing official rates that are less than zero.3 Will the U.S. be the next country to implement a negative interest rate policy? .. It seems monetary authorities agree that NIRP might be implemented in the U.S. if our economy enters a sharp downturn. This would have important implications for the markets. In fact, the current negative rates in other countries are already having a major impact on certain asset classes, especially on precious metals.”
