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.
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.
Comment