We spoke to TV3 News about the ECB move to turn deposit rates negative and implement a small rate cut bringing deposit rates to -0.1% and the base rate to 0.15%.
The ECB released a further 500 billion, Bank of England 10 billion and the Fed 20 billion This was done as a follow on the the USA’s liquid injection rather than rate cut, the idea is to lower interbank rates, increase liquidity and at the same time not promote inflation.
Thankfully and historically we are seeing a trend here. The Fed, ECB, Canadian Central Bank, Bank of England and the Swiss Central Bank all acted in unison, traditionally this was not the case and its great to see that internationally we can start acting in a global way in a global world. Prior to this we acted in a national way in a global world, central banks didn’t refer to eachother before making a move.
All the banks with the qualifying collateral could buy from the ECB at 4.21% which is what the old Euribor was, this will mean that the people selling from euribor rates will only be able to sell to institutions which don’t qualify for this money, it may also mean that the people who are most …