Negative Rates in Washington

The most frequently repeated words during meetings and conversations last week in Washington were: low growth, political interference, trade war, downside risk, negative rates, financial instability, green economy, uncertainty, unilateralism and fiscal policy.

Key points

• Key points:
• All of those words appear in the IMF's two main publications: the World Economic Outlook (WEO) and the Global Financial Stability Report (GFSR).
• The IMF revised global growth downward and foresees that the US–China trade war will have a strong economic impact, as even the most skeptical can already see.
• The Global Financial Stability Report (GFSR) concludes that there are vulnerabilities associated with such low interest rates, causing investors to take high risks.

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