Economists Far From Sure We’ll See Negative ECB Deposit Rates
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
The European Central Bank won’t cut the rate it charges on overnight deposits anytime soon and even if it were to, the effect might not be as desired, say economists.
Their remarks come after ECB Governing Council member and Bank of Italy Governor Ignazio Visco told the Wall Street Journal in an interview that there was no need to fear the “unintended consequences” of the central bank cutting the rate on excess deposits below the current 0% level.
But whether the ECB will ever go down this road is a very open question for all that such hopes can apparently support bond markets from time to time.
”I think the chance of this happening is not particularly large,” said Marco Valli, an economist with bank UniCredit in Milan. Christian Schulz, an economist at private bank Berenberg in London, meanwhile, said it is something the ECB would do only “as a last resort.”
read more ...