Tiered ECB rate needs monetary policy case: Praet
Tweet
Share
E-mail
Peter Praet, executive board member of the European Central Bank (ECB) delivers his speech at the conference "The ECB and its watchers" in Frankfurt, Germany, March 27, 2019. REUTERS/Kai Pfaffenbach
FRANKFURT (Reuters) - The European Central Bank must have a monetary policy case if it is to consider a multi-tier deposit rate, outgoing ECB chief economist Peter Praet said on Monday.
The ECB is currently studying whether to grant relief to banks from some of the charges on its minus 0.4 percent deposit rate, worried that weak bank profitability could impair the transmission of its policy.
But policymakers have long argued that low bank profits are not enough for the ECB to introduce such a new tool and instead, they need to be convinced that policy on the whole, for the entire currency bloc, would benefit.
(Reporting by Balazs Koranyi; Editing by Peter Graff)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- US health watchdog expects $5.56 billion in recoveries and savings
- Traffic accident in Mexico leaves 9 dead and 10 injured, four of them Americans
- EU ministers to debate curbing trade with Israeli settlements
Create E-mail Alert Related Categories
ReutersRelated Entities
European Central BankSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
