PBOC: Central banks may resort to negative interest rates more often in future

Reuters cites the following key points from a working paper published by China's central bank, the People’s Bank of China (PBOC) on Tuesday.

Central banks (CBs) should adopt negative rate policy during deflationary recessions.

Negative interest rates can be used as a conventional monetary tool to revitalize growth.

Digital currency will strengthen the effectiveness of negative interest rate policy.

CBs should promote digital currency.