ECB is capable of negative rates - but consequences are uncertain
The European Central Bank (ECB) is like a "golfer who has a huge set of specialised clubs at his disposal" – with one of those ‘clubs' being negative interest rates on deposits, according to ECB executive board member Yves Mersch.
Addressing Nordea's Nordea 3rd Annual Nordic AAA Seminar in Copenhagen yesterday, Mersch said the ECB is "ready to implement a negative deposit facility rate" from a "technical point of view", but added that the consequences of doing so "are subject to considerable
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