Bank of England (BoE) Governor Mark Carney warned major central banks at the G20 summit on Friday that implementing negative rates was the wrong answer to the slowdown in the global economy.
"To the extent it pushes greater savings onto the global markets, global short-term equilibrium rates would fall further, pulling the global economy closer to a liquidity trap. At the global zero bound, there is no free lunch," he said.
Carney also warned that central bank should not depreciate their currencies.
"For monetary easing to work at a global level it cannot rely on simply moving scarce demand from one country to another," BoE governor noted.
Carney pointed out that structural measures were needed to boost the global economy.
"Global growth has disappointed because the innovation and ambition of global monetary policy has not been matched by structural measures," he said.