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ECB negative interest rates—five expert views

By Jay Elwes  

The European Central Bank has cut its main interest rate to 0.15 per cent, and imposed an interest rate charge of 0.1 per cent upon banks leaving money in the ECB (as opposed to the traditional practice whereby central banks pay interest on such reserves). ECB governor Mario Draghi has also indicated a willingness to engage in “asset purchases” (quantitative easing) if the ECB deems fit. The ECB sees no immediate crisis any longer—either with Eurozone sovereigns or with banks. Neither does it appear, yet, to believe falling prices—deflation—in a few Eurozone member states is especially damaging.

Its actions are more…

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