September 23, 2019 / 12:42 PM / a month ago

ECB's Knot: Unclear how savers would respond to negative rates

ECB board member Klaas Knot appears at a Dutch parliamentary hearing in The Hague, Netherlands September 23, 2019 REUTERS/Eva Plevier

AMSTERDAM (Reuters) - European Central Bank governing council member Klaas Knot on Monday said it was unclear how bank savers would respond if commercial banks were to impose negative interest rates.

“We don’t know what would happen because that’s never happened before,” Knot told Dutch parliament’s finance committee. “If they were to pull their savings, that could cause a bank run.”

Reporting by bart Meijer and Toby Sterling; Writing by Anthony Deutsch; Editing by Kevin Liffey

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