Negative interest rates are harming growth – but it is hard to hike rates until growth takes off
by Tim Wallace
Permanently low interest rates are ruining investments and savings, the Organisation for Economic Co-operation and Development (OECD) has warned, undermining long-term economic growth.
Low rates are designed as an emergency boost to crisis-stricken economies, but are harmful over long periods of time, the study said.
The only way out is for governments to reform stagnant economies, allowing bad companies to go bust, encouraging banks to write off loans to those failing companies, and encourage innovative firms to grow, it said.