Morgan Stanley Says Hiking From Negative Rates Not Necessarily `Tightening'

What is one reason for the recent yield compression in Europe, particularly in Italy?

• Rapid economic growth

• Temporary compromise easing pressure

• High investor expectations

• Increased inflation rates

What is the market's current expectation regarding the ECB's interest rate hike?

• A hike in 2020

• An immediate hike

• No hike until 2025

• A hike next month

How might moving rates off negative levels affect the financial system?

• It will lead to a recession

• It may not tighten policy in the traditional sense

• It will have no impact

• It will tighten policy significantly

What is one potential benefit of shifting from negative to positive interest rates?

• Increased inflation

• Decreased banking profitability

• Improved banking profitability

• Higher unemployment rates

What could be a signaling mechanism for European businesses regarding interest rates?

• Stable inflation rates

• Rising German two-year rates

• Decreasing unemployment

• Increasing fiscal deficits