ECB’s Knot: On balance, effects of negative rates have been positive

The Governing Council member of the European Central Bank (ECB), also the Dutch central bank head, Klass Knot recently crossed the wires, via Reuters, while praising negative rates. The ECB members earlier anticipated upbeat policy measures under the incoming President Christine Lagarde.

Key quotes

“On balance, effects of negative rates have been positive.”

More to come…

FX implications

Markets show no reaction to the news with the EUR/USD pair taking rounds to 1.1125 by the press time of Friday-start in Asia.