Low and negative rates are perverse and there can never be an adequate economy with them. Rates need to rise.
It can be done gradually while gradually eliminating the right of commercial banks to offer interest on deposits. CB savings deposits have grown dramatically. This is bad because this money is inert.
As interest on savings deposits is removed money will leave bank savings accounts and go to the non-banks where money is actually put to use. Money velocity happens via the non-banks, not the commercial banks.
The commercial banks do not lose any deposits. The non-banks are customers of commercial banks and deposit the money right back into the commercial banking system the same day a savings account customer decides to accept an offer from a non-bank. It is just that the money is now in checking accounts where money velocity happens and not in savings accounts where money sits and does nothing.
Banks don’t use the savings deposit to make loans. Banks do not and cannot lend out savings deposits. These deposits are used to support the banks trading and speculative activities. These activities do not involve main street America. Money velocity is dying from money going into commercial bank savings accounts.