{"id":14697,"date":"2015-11-23T15:59:28","date_gmt":"2015-11-23T20:59:28","guid":{"rendered":"http:\/\/olduvai.ca\/?p=14697"},"modified":"2015-11-23T15:59:28","modified_gmt":"2015-11-23T20:59:28","slug":"swiss-bank-goes-there-applies-negative-rates-to-retail-deposits","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=14697","title":{"rendered":"Swiss Bank &#8220;Goes There&#8221;, Applies Negative Rates To Retail Deposits"},"content":{"rendered":"<h3 class=\"title\"><a href=\"http:\/\/www.zerohedge.com\/news\/2015-11-23\/swiss-bank-goes-there-applies-negative-rates-retail-deposits\" target=\"_blank\">Swiss Bank &#8220;Goes There&#8221;, Applies Negative Rates To Retail Deposits<\/a><\/h3>\n<p>Back in September in \u201c<a href=\"http:\/\/www.zerohedge.com\/news\/2015-09-17\/how-mario-draghi-can-force-swiss-national-bank-go-nuclear-depositors\">How Mario Draghi Can Force The Swiss National Bank To Go \u2018Nuclear On Depositors<\/a>,\u201d we discussed the implications of the ECB\u2019s (likely) decision to plunge further into NIRP-dom at the bank\u2019s December meeting.<\/p>\n<p>In short, DM central banks &#8211; with the possible exception of the Fed which is about to create a rather meaningful policy divergence with its core CB brethren &#8211; are in a proverbial race to bottom. It\u2019s a beggar-thy-neighbor monetary policy regime and the more stubborn inflation expectations prove to be, the more aggressive the tit-for-tat easing, as everyone involved scrambles to protect their currency in the face of incessant competitive devaluations on all sides.<\/p>\n<p>As we outlined in great detail in the post linked above,<strong>\u00a0the ECB\u2019s ultra dovish lean has the potential to create a lot of problems for the Riksbank, the Norges Bank, and the SNB.<\/strong><\/p>\n<p>Sweden is\u00a0<a href=\"http:\/\/www.zerohedge.com\/news\/2015-10-26\/giant-wave-money-heads-sweden-draghi-creates-nightmare-riksbank\">running out of options<\/a>\u00a0for a QE program that\u2019s already broken once (see\u00a0<a href=\"http:\/\/www.zerohedge.com\/news\/2015-06-25\/first-time-ever-qe-has-officially-failed\">here<\/a>\u00a0and\u00a0<a href=\"http:\/\/www.zerohedge.com\/news\/2015-07-02\/swedens-qe-officially-broken-riksbank-doubles-down-lowers-rates-even-more-negative-b\">here<\/a>) and although Stefan Ingves will probably tell you there\u2019s more room to cut in the event Draghi moves on the depo rate, the Riksbank is already at -0.35 and the housing bubble has reached epic proportions. Of course staying on hold in the event of an ECB cut means the krona will soar and then, well, there\u2019s goes any hope of hitting the elusive inflation target.<\/p>\n<p>Norway, on the other hand, can\u2019t even begin to think about QE because frankly, they\u2019re too rich. That is, the Norges Bank\u00a0<a href=\"http:\/\/www.zerohedge.com\/news\/2015-11-16\/rich-nation-problems-even-if-norway-wanted-do-qe-they-couldnt\">wouldn\u2019t have enough assets to buy<\/a>\u00a0without breaking the market pretty much immediately. That leaves rate cuts and to be sure, at +0.75 (yes, that\u2019s right, not everyone is in NIRP), there\u2019s probably a bit of breathing room there for Oeystein Olsen and he may need it come next month.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Swiss Bank &#8220;Goes There&#8221;, Applies Negative Rates To Retail Deposits Back in September in \u201cHow Mario Draghi Can Force The Swiss National Bank To Go \u2018Nuclear On Depositors,\u201d we discussed the implications of the ECB\u2019s (likely) decision to plunge further into NIRP-dom at the bank\u2019s December meeting. In short, DM central banks &#8211; with the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[124,8725,233,282,1154,558,1389,661,662,3471,4318],"class_list":["post-14697","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-competitive-devaluation","tag-ecb","tag-european-central-bank","tag-interest-rate-policy","tag-negative-interest-rates","tag-nirp","tag-qe","tag-quantitative-easing","tag-riksbank","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/14697","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14697"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/14697\/revisions"}],"predecessor-version":[{"id":14698,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/14697\/revisions\/14698"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14697"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14697"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14697"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}