It’s kind of a “take it, give it here”. cristina lagarde knows that it generated great expectations in relation to the “new tool” that it promised to present, to avoid “unjustified” rises in the costs of the debt of the countries of southern Europe. But, as it will not be easy to convince the so-called “ECB hawks”, the bargaining chip could be a faster rise in interest rates – that is, this Thursday could be a doubly historic day: Not only will there be the first rate hike since 2011, but the ECB could end, with a stroke of the pen, the era of negative interest rates in the eurozone.
Since mid-2014, the call has been below zero. deposit feewhich in simple terms means that banks not only not receive interest when they deposit excess liquidity in the ECB how do they end up receiving less than what they deposited there. In 2019, this deposit rate fell to an even more negative low, from -0.50%but this Thursday it is possible that the central bank will opt not for the increase of just a quarter of a percentage point (25 basis points) that it forecast, but for 50 basis points.
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Source: Observadora
