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Central Bankers Do the Limbo

It seems these days central banks are doing the interest rate Limbo dance.

The Limbo dance requires participants to pass under a low bar without falling over or dislodging the bar. Every round, the bar gets a little lower. Sounds a lot like central bankers trying to deftly navigate monetary policy with every round of easing leaving them less room to maneuver.

The ECB just this week lowered its deposit rate to -0.5% from -0.4% (it first "bent" below zero in 2014) and announced new bond purchases. T...

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