Saxo Bank predicts that Christine Lagarde, the new European Central Bank president, could decide to reverse the direction of monetary policy in Europe.
"She points out that maintaining negative deposit interest rates for a longer period could seriously harm the soundness of the European banking sector," Saxo Bank wrote, referring to a hypothetical scenario.
The firm added: "In order to force euro area governments, and notably Germany, to step in and to use fiscal policy to stimulate the economy, the ECB reverses its monetary policy and hikes rates on January 23, 2020."