There was an interesting article in today’s US print edition of the Financial Times, titled “Fear for lenders over deeper negative rates“. The article comments that banks have, so far, swallowed all the penalties created by central banks dropping inter bank rates below zero – i.e. negative. The article suggests that bank profits are being hit from many different sides, and the implication is that banks may soon pass onto consumers the negative interest rates imposed on them. This would mean you and I might be penalized for saving money. This perverse action seems just a nod and a wink away and would be most damaging to the psychology for how consumer savings drive growth in economies.