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ZIRP becomes NIRP

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    ZIRP becomes NIRP

    At today’s meeting the Governing Council of the ECB took the following monetary policy decisions: (1)The interest rate on the main refinancing operations of the Eurosystem will be decreased by 5 basis points to 0.00%, starting from the operation to be settled on 16 March 2016. (2)The interest rate on the marginal lending facility will be decreased by 5 basis points to 0.25%, with effect from 16 March 2016. (3)The interest rate on the deposit facility will be decreased by 10 basis points to -0.40%, with effect from 16 March 2016. (4)The monthly purchases under the asset purchase programme will be expanded to €80 billion starting in ...

    The ECB has also announced a new long-term bank lending programme, called a TLTRO.
    It will run for four years, and allow eurozone banks to borrow cheaply from the central bank.
    Crucially, these loans could be as cheap as the ECB deposit rate - which it has just cut to minus 0.4%!

    So there you have it, banks can borrow and get paid for doing it.

    #2
    I'm confident NIRP will succeed where ZIRP has failed. What could possibly go wrong!
    http://www.cih.org/news-article/disp...housing_market

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      #3
      NOW is the time to buy European equities and property!

      Companies in the EU can issue corp bonds, sell them to the ECB and then buy back their own shares with the free money.



      A lot of this money flood will end up in EU property.

      Comment


        #4
        Originally posted by DimPrawn View Post
        NOW is the time to buy European equities and property!

        Companies in the EU can issue corp bonds, sell them to the ECB and then buy back their own shares with the free money.



        A lot of this money flood will end up in EU property.
        How 'funny' can money get before it all falls over?

        Comment


          #5
          Originally posted by The_Equalizer View Post
          How 'funny' can money get before it all falls over?

          Comment


            #6

            Comment


              #7
              Pah dim shrimp, you are a pauper!

              Comment


                #8
                Originally posted by AtW View Post
                That chap looks awfully well off.

                Comment


                  #9
                  Originally posted by The_Equalizer View Post
                  That chap looks awfully well off.
                  Not as near as well as the other guys -

                  Comment


                    #10
                    I see things progressing like this:

                    ZIRP-->NIRP-->F(ecked)IRP

                    I reckon we're about 6mo-1yr away from FIRP.

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