Pimco joins chorus of negative rate detractors

Negative move: Powell said negative rates would ‘certainly not be appropriate in the current environment’. — AP

FRANKFURT: Bond powerhouse Pacific Investment Management Co has become the latest high profile critic of negative interest rates, warning that one of the key central-bank tools in economically beleaguered Europe and Japan may do more harm than good.

In a report published yesterday, Pimco noted three key drawbacks of sub-zero rates.