Therefore, negative policy rates are not a reliable policy to make the exchange rate more favourable to domestic exporters. In addition, negative DFRs should not be seen as a zero sum game as the boost to growth which they provide benefits all jurisdictions via trade spill-overs. ECB staff finds supportive empirical evidence for the empowering complementarities of our measures.
For instance, banks in less-vulnerable euro area countries have been granting more loans to the real economy than would have been the case without a negative DFR.