Skip to main content

Do negative ECB interest rates lead to higher saving?

We disagree with recent suggestions that negative central bank policy rates encourage households to increase their savings, thereby reducing demand and weighing on inflation. In fact, the opposite seems to be true in the euro-zone. We suspect that concerns about banks will prevent further rate cuts. But we still think that the ECB will extend its QE programme, which would push down long-term interest rates and give the economy a boost.


Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access