It seems like a preventative measure against deflation. The disruption this may cause in money market accounts is outweighed by the specter of getting out of deflation once it catches on.
Also, its only 10 basis points of negative carry. Not a lot on bank reserves.
Best course of action: start buying hedged (if in U.S. dollars) European equities.
Also, its only 10 basis points of negative carry. Not a lot on bank reserves.
Best course of action: start buying hedged (if in U.S. dollars) European equities.