September 12, 2019 2:24 pm

ECB to further cut deposit rate for banks

The European Central Bank (ECB) will further cut the deposit rate for banks. In the future, the European financial institutions will pay an interest rate of 0.5 percent if they store their money at the central bank. So far, the banks have had to pay a deposit rate of 0.4 percent. The key interest rate remains at zero percent.

Following today’s interest rate meeting in Frankfurt, ECB President Mario Draghi also announced that the European Central Bank will continue its not uncontroversial bond purchases. 20 billion euros are to be invested monthly in the purchase of securities from 1 November. The Council of the European Central Bank (ECB) gave the green light for this. Reuters

This post was written by Jens Secker

(Image rights: istockphoto.com/Instamatics)

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