Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

ECB to impose negative deposit rate in June

ECB to impose negative deposit rate in June

The European Central Bank (ECB) is to move to a negative deposit rate at its meeting on 5 June according to leaked documents seen by German newspaper Der Spiegel.

The bank will also cut its main refinancing rate from 0.25% to a fresh record low of 0.15%, the paper reported.

But the move to charge an effective tariff of 0.1% on all funds deposited with the bank in an effort to spur lending and ease liquidity is the more significant move.  

Following effectively static Q1 GDP growth across the eurozone, the ECB is under increasing pressure to follow other central banks around the world down the path of unconventional easing measures.

Weak exports in particular have held back the pace of the recovery, with the strength of the euro making the continent’s goods relatively uncompetitive.

Der Spiegel added that the ECB would limit its approach for the time being, and would not discuss a move toward outright QE, in case deflationary pressures continue to rise.

Broad money growth in the Eurozone, as measured by M3, has continued to fall. After peaking at a recent high of 3.9% in October 2012 the measure fell back to 1.1% in March.     

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Video special: what Scottish DFMs think of SNP election flop

Video special: what Scottish DFMs think of SNP election flop

As delegates gathered for Citywire Scotland, we asked them their take on the election.

Play Keith Skeoch: 'passive has a part to play'

Keith Skeoch: 'passive has a part to play'

In the third part our series, Skeoch outlines his vision for Standard Aberdeen.

2 Comments Play Keith Skeoch: why I believe markets will make 'substantial returns'

Keith Skeoch: why I believe markets will make 'substantial returns'

In an exclusive interview, Standard Life CEO Keith Skeoch tells us why he takes an optimistic view on markets just about everywhere.

Read More
Your Business: Cover Star Club

Profile: Rathbones' fund boss on spotting emerging talent

1 Comment Profile: Rathbones' fund boss on spotting emerging talent

A great fund manager is really easy to spot, says Mike Webb, chief executive of Rathbones Unit Trust Management

Wealth Manager on Twitter