European Central Bank

ECB policymakers play down prospect of deposit rate cut

Thomson ReutersMay 8, 2013 17:28

By Michael Winfrey and Jan Lopatka BRATISLAVA (Reuters) - European Central Bank policymakers played down on Friday prospects of the bank cutting its deposit rate below zero any time soon, saying it was just one of several possible treatments for the sickly euro zone economy. ECB President Mario Draghi said on Thursday the ECB was "technically ready" to shift the deposit rate into negative territory, meaning it would start charging lenders for holding their money overnight - a thorny issue for already strained financial markets.

ECB negative rates not yet option, says central banker

Agence France-PresseMay 3, 2013 12:46

The European Central Bank, which has just cut its key rates to an all-time low, is not considering negative interests for now, a top ECB governor said Friday. Austrian central bank chief Ewald Nowotny told reporters on the sidelines of a conference in Bratislava that a negative deposit rate was not on the table for now. "I think the markets have over-interpreted the discussion yesterday," said Nowotny, who sits on the ECB's decision-making governing council.

Negative ECB interest rates not an option yet

Agence France-PresseMay 3, 2013 05:00

The European Central Bank, which has just cut its key rates to an all-time low, is not considering negative interests for now, a top ECB governor said Friday. Austrian central bank chief Ewald Nowotny told reporters on the sidelines of a conference in Bratislava that a negative deposit rate was not on the table for now. "I think the markets have over interpreted the discussion yesterday," said Nowotny, who sits on the ECB's decision-making governing council.

ECB cuts rates to record low

Agence France-PresseMay 2, 2013 15:45

The European Central Bank cut interest rates to a new record low on Thursday amid a chorus of calls for the eurozone to focus on growth to end a "nightmare of unemployment" in the bloc. A day after May Day demonstrations across Europe for an end to punishing austerity in favour of policies to spur growth, the ECB shaved a quarter point off its key "refi" refinancing rate to a new record low of 0.50 percent. The widely expected move was by no means unanimous on the ECB's policy-setting governing council, central bank chief Mario Draghi revealed.

A look at the impact the ECB's rate cut will likely have on households, companies and markets

The Canadian PressMay 2, 2013 13:01

FRANKFURT - The European Central Bank influences the cost of borrowing in the economy of the 17-country eurozone by moving its key interest rate up and down. Its main refinancing rate is the rate at which eurozone banks can borrow from the ECB. That affects the rate at which banks borrow from each other, the so called money-market rates. Based on these rates, the banks then decide how much to charge consumers and businesses for loans and how much to pay on deposits. Here's how ECB rate cuts can affect households, companies and markets: COMPANIES

ECB cuts rates to record low

Agence France-PresseMay 2, 2013 12:32

ECB refi rate: the bank's main monetary policy tool

Agence France-PresseMay 2, 2013 11:30

The European Central Bank's minimum refinancing rate, which its governing council lowered by a quarter point to 0.50 percent Thursday, is its main instrument for controlling credit and fighting inflation in the eurozone. The 'refi' rate, which is used during weekly ECB refinancing operations, is the barometer for lending costs in the 17 countries that have adopted Europe's single currency. Banks that want to refinance their accounts do so by paying interest on the sum borrowed from their respective national central banks.

ECB chief vows liquidity 'for as long as necessary'

Agence France-PresseMay 2, 2013 11:15

The European Central Bank pledged Thursday to continue to keep banks flush with as much liquidity as needed to keep credit flowing in the debt-wracked eurozone. Speaking after the ECB trimmed its key interest rate to a new all-time low of 0.5 percent, bank chief Mario Draghi said it would keep its liquidity channels wide open. The ECB will continue to conduct its main weekly refinancing operations (MROs) "for as long as necessary, and at least until ... July 8, 2014," Draghi said.

ECB cuts key rate by quarter point to record low 0.50%

Agence France-PresseMay 2, 2013 08:15

The European Central Bank pared back its key interest rates Thursday as calls mount across the eurozone to focus on growth rather than austerity. As widely forecast by analysts, the ECB trimmed its central "refi" refinancing rate by a quarter of a percentage point to a new record low of 0.50 percent. spm/dlc/wai

ECB cuts key rate by quarter point to record low 0.50%

Agence France-PresseMay 2, 2013 08:15

The European Central Bank pared back its key interest rates on Thursday as calls mount across the eurozone to focus on growth rather than austerity. As widely forecast by analysts, the ECB trimmed its central "refi" refinancing rate by a quarter of a percentage point to a new record low of 0.50 percent. The central bank also cut its marginal lending facility by half a percentage point to 1.00 percent. But it held the interest rate on the deposit facility unchanged at zero percent.