ECB may make banks pay for overnight deposits - report
"We decline to comment," an ECB spokeswoman said when contacted by Reuters about the story, in which Bloomberg cited two people with knowledge of the debate within the bank. Another
central bank official told Reuters the ECB, euro zone countries'
national central banks, and corporate lenders have adjusted their
internal systems to cope with negative deposit rates should they come.
RTE News: The
European Central Bank is considering making banks pay to deposit cash
with it overnight, according to news agency Bloomberg, which cited
unnamed sources.
With euro zone inflation well below target, the ECB cut interest
rates to a new record low and has made clear it is open to the
possibility of taking other steps to bring inflation closer to its
desired level.
Bloomberg said that were the ECB to decide to take the deposit rate
into negative territory from the current level of zero, it would
consider an interest rate of -0.1%."We decline to comment," an ECB spokeswoman said when contacted by Reuters about the story, in which Bloomberg cited two people with knowledge of the debate within the bank.