The ECB’s move last month to reduce one of its deposit rates into a negative figure was unprecedented.
The idea was to discourage banks from simply parking their money at the central bank.
It’s slightly improved interbank lending, but it’s a different story for consumer credit.
ECB maintains key rates, including negative deposit rate
The ECB's move last month to reduce one of its deposit rates into a negative figure was unprecedented. The idea was to discourage banks from simply parking their money at the central bank. It's slightly improved interbank lending, but it's a different story for consumer credit.Jacob Kirkegaard, a Senior Fellow at the Peterson Institute for International Economics, shares his insight on why businesses are not taking full advantage of record low interest rates.