Comments from the IMF's Jose Vinals after the release of the Global Financial Stability Report:
- There are limits to how low negative rates can go
- negative rates are useful for supporting growth
It's significant that the IMF is taking a position on negative rates. So far, the returns have been mixed. The endorsement from the IMF will allow countries to deploy rates for competitive devaluation without the risk of repercussions.
- Brexit would undermine confidence in London as financial hub
- Would be a negative shock to UK and EU
- China needs more comprehensive strategy to corporate debt