ECB risks chasing own tail on bond buying with cut in deposit rate
It probably makes more sense for the bank to abandon deposit rate floor, says analyst
Add BT as a preferred sourceDeeperDive is a beta AI feature. Refer to full articles for the facts.
London
THE European Central Bank risks staying one step behind the market, even if it lowers its deposit rate next week.
A 10 basis-point cut to the minus 0.2 per cent rate, which acts as a floor for the ECB's bond-buying plan, would at a stroke make US$373 billion more securities available for the programme. History suggests that amount could quickly evaporate.
Share with us your feedback on BT's products and services
TRENDING NOW
Ministry of Home Affairs Permanent Secretary Pang Kin Keong to retire
Shelving S$5 billion office redevelopment plan proved ‘wise’ as geopolitical risks mount: OCBC chairman
Richard Eu on how core values, customers keep Singapore’s TCM chain Eu Yan Sang relevant
China pips the US if Asean is forced to choose, but analysts warn against reading it like a sports result
