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?

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

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

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

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