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Fink Warns Negative Rates Could Have 'Dangerous Consequences'

Nations are leaning too much on monetary policy while failing to invest in infrastructure, BlackRock chairman said.

By David Scheer, Bloomberg | Updated on April 14, 2016

BlackRock Inc.’s Laurence D. Fink called negative interest rates “particularly worrying” and potentially counterproductive, as social and political risks contribute to what he described as the most fragile global economy in about a decade.

Nations around the world are leaning too much on extraordinary monetary policies while failing to make key decisions and invest in infrastructure to support long-term growth, Fink, chairman and CEO of the world’s biggest asset manager, wrote in an annual letter to shareholders on Sunday. The policies are eroding investors’ returns and putting pressure on consumers to cut spending as they prepare for retirement, which may ultimately damage the growth that central banks are trying to spur, he said.

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