ECB is reportedly considering a negative deposit rate, meaning eurozone lenders would have to pay the ECB to deposit money with it.
Latest
ECB may want to make a gradual drift into negative deposit rate
16.05 The possible ECB deposit rate cut to -0.1pc may be a compromise position “from those looking to bring the rate negative,” DRW strategist Lou Brien writes in note:
Creeping into the valley of negativity rather than charging into it might make a move to a negative deposit rate more likely than otherwise would be the case
Almanza and Lyons admit G4S and Serco were wrong
16.02 Both Almanza and Lyons admit that charging the MoJ for services it did not deliver were “wrong”. Both point out that their contracts were written in such a way that left them open to overcharging – but both say that regardless of the contractual rights or wrongs, that it was wrong to overcharge.
Almanza says:
It was a judgement that was flawed. It was a flawed jdgement. I don’t think we did correctly tell the difference between right and wrong, we got it wrong.
Here’s Lyons:
It was totally wrong as far as we’re concerned. That may have been a contractual interpretation – it still doesn’t make it right.
Euro dives on suggestion of negative interest rates
15.53 Here’s the chart that shows how the euro reacted to news that the ECB is mulling a negative deposit rate.
Source: Bloomberg
Are PAC members on Prozac
Are PAC members on prozac?
15.51 But it doesn’t look like we’ve missed many fireworks at the PAC:
15.43 Shifting away from the Public Accounts Comimittee, Bloomberg has reported that the European Central Bank is mulling a move into negative deposit rates. The move has seen the euro drop and triggered a rally in European shares.