RBS's Davies: Negative Rates in Line With a Lot of Banks

The transcript discusses a bank's recent changes to terms and conditions, which were misunderstood and received significant press coverage. The changes aimed to align with other banks' practices, particularly regarding negative interest rates. The speaker, a banker and economist, expresses concerns about negative rates, suggesting they create perverse incentives and limit central bank control. He advocates for targeting a higher inflation rate to avoid these issues.

What reasons were given for the misunderstanding regarding the changes in terms and conditions?

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Why does the speaker believe that negative interest rates are not favorable for bankers?

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How do negative interest rates create perverse incentives in society according to the speaker?

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What concerns does the speaker express about the central bank's control when interest rates reach the lower band?

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What is the speaker's opinion on the inflation rate targeting and its implications?

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