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ECB Plans Negative Rate on Bank Deposits – Spiegel

May 20, 2014 10:03 AM

Der Spiegel is reporting,

When it meets on June 6, SPIEGEL has learned, the European Central Bank may implement a negative interest rate for financial institutions seeking to park their money at the Frankfurt powerhouse. The move is aimed at spurring loans.

European Central Bank executive board member Peter Praet of Germany is expected to recommend that the bank cut its main refinancing rate from the current 0.25 percent to a record low of 0.15 percent when the bank’s Governing Council meets on June 5.

No surprise, but coming from a German source pretty much makes it a done deal, IMHO.

Posted by macromon

Categories: Euro

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