The European Central Bank (ECB) needs to do something to reflate the economy, but negative interest rates aren't it, said David Hussey, Manulife Asset Management's head of Europe, Australasia and Far East equities.
As the ECB heads into its meeting on March 10, its President Mario Draghi "needs to reassure markets that he can kick start and reflate the European economy," Hussey told CNBC's "Squawk Box," noting inflation is at multi-year lows due to weak oil and commodity prices.
But negative interest rates -- or cutting the ECB's deposit rate deeper into negative territory from the current negative 0.3 percent as many expect the central bank will do next week -- aren't the way to go, Hussey said.
"It's just a horrible policy. The worst thing it does is it sucks confidence out of the system," he said. "It's bad for banks, bad for banks' capital. It's bad for lending; it's therefore bad for the economy. So they need to have a rethink on that one."