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Experts at the International Monetary Fund (IMF), Jose Vinals, Simon Gray and Kelly Eckhold, said in a paper that negative interest rates had a positive impact on the economy and inflation, by boosting demand and supporting stable prices.
The IMF experts noted that wholesale interest rates fell, while credit growth in the Eurozone rose since the European Central Bank introduced negative interest rates.
But experts also said that there were risks as negative interest rates could lead to lower profitability of commercial banks.
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