Luca Paolini: Impact of Negative Interest Rates "Still Unclear"

The European Central Bank ramped its efforts to boost the Eurozone's economy with a package of measures it unveiled on Thursday, including lowering interest rates further into negative territory and expanding bond purchases. Luca Paolini, Chief Strategist of Pictet Asset Management, joins Tanya Rivero to discuss the ECB's move.

LUCA PAOLINI: The question is, "Is it going to help the European economy?" Well, we know it's not great for the banks because, obviously, margins for the banks will go down and it's still unclear what impact will be on European growth.

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Over the long term, you have to assume that negative interest rates should be negative for the currency. But, it's not that obvious. We see the same situation in Japan, by the way.