Business World

Thursday 14 December 2017

ECB 'will not rule out' negative deposit rate

Michelle Martin

EUROPEAN Central Bank Executive Board member Joerg Asmussen said the European Central Bank was ready to take further action if necessary and instruments at its disposal included negative deposit rates.

The ECB slashed its main refinancing rate to 0.25pc at its meeting on November 7 after inflation in the single currency bloc eased to 0.7pc in October – well below the ECB's target of just below 2pc for the eurozone.

"We will take further action if it is necessary to ensure price stability in the whole of the eurozone," Mr Asmussen, inset, said at a weekend conference organised by German newspaper 'Sueddeutsche Zeitung' in Berlin.

A negative deposit interest rate was "theoretically possible", he said, but added that he would be very cautious in using this.

"We discussed it in the ECB Governing Council meeting but I've always said I'd be very, very careful," he said, adding that he wouldn't rule it out.

Irish Independent

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