Go to the Globe and Mail homepage

Jump to main navigationJump to main content

AdChoices

Globe Investor

Inside the Market

Up-to-the-minute insights
on developing market news

Entry archive:

Contra Guys: Time to tune in to this undervalued stock Add to ...

Subscribers Only

From this angle, negative interest rates are dumb. They effectively force banks to lend money to move the economy or be penalized. This encourages riskier loans with less probability of a payback. Unfortunately, this way of stimulating the economy is becoming more of a flavour of the day and one that the Bank of Canada has said it is not ruling out. It could ultimately have major negative repercussions both on the country and the global economy as it reduces the safety net.

Report Typo/Error

Follow us on Twitter: @GlobeInvestor

Next story

loading