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German finance minister told banks not to hit savers with negative rates: Bild

Published 09/16/2019, 05:10 AM
Updated 09/16/2019, 05:11 AM
© Reuters.  German finance minister told banks not to hit savers with negative rates: Bild

BERLIN (Reuters) - German Finance Minister Olaf Scholz said on Monday he had told banks not to pass on negative interest rates to savers after the European Central Bank cut deposit rates to a record low.

Scholz told mass-selling Bild newspaper that he opposed government guarantees to prevent negative rates for savers.

"I told bank chief very clearly that it would be a fairly bad idea to react by slapping negative rates on millions of savers," Scholz was quoted as saying.

Latest comments

you can always take the money out from bank, no need to spend.
Bad for the economy, or bad for politics? I thought the whole point of negative rates was to encourage spending by punishing savings. At least, that is what all these economic experts keep telling us. But I guess they forgot that politicians have much shorter-term agendas.
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