500 euro note an obstacle to ECB policy

10 February 2016

 

In 2014, the ECB reduced its deposit rate to below zero, which means banks are paying the central bank to park their money. There is a current expectation this rate may be further extended into the negative when the ECB next meets in March as it seeks to stimulate bank lending. Some banks have passed on the negative rates to customers and this is causing an interesting reaction. Negative interest...

read full story