Saxo Bank: Lagarde may declare monetary policy overreached limits

In one of its ‘outrageous predictions’ for 2020, the Danish bank says the ECB may wake up to the sad reality of negative interest rates

Christopher Dembik
Christopher Dembik: investment channel hasn’t really delivered and productivity is still too slow in the eurozone

Saxo Bank predicts that in January 2020, in an unprecedented turn of events, Christine Lagarde, the new president of the European Central Bank, could execute a volte-face and declare its monetary policy has overreached its limits.

Negative deposit rates were first introduced in the euro area to force commercial banks to seek better returns elsewhere to stimulate productive investment. This should, in theory, result in higher productivity and stronger growth, says Christopher Dembik, head of

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