Through the looking glass and into Europe

Lending more is far from the only response Europe’s banks could take to negative interest rates. They could equally hoard paper, or pass the cost of negative rates on to customers.

A hint by the European Central Bank that it would consider imposing negative interest rates on deposits has rightly spooked financial markets.

The search for normality in Europe looks set to be a long and arduous one. The strange days are far from over.

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