The European Central Bank this morning further cut its deposit rate into negative territory. The ECB dropped the deposit rate on money parked at the central bank overnight to minus 0.3% from minus 0.2%. The ECB left its key lending rate unchanged at 0.05% and the rate on its marginal lending facility at 0.3%.
The remarks made by ECB President, and former Goldman Sachs managing director, Mario Drgahi, following the rate change are here.
-RW
This puts a further hamper on the possibility the FED will raise rates. Central Banks work in a coordinated effort. The FED will not want slam the EURO further by raising interest rates. Still think the FED will raise rates now, Robert? There is still time to change your mind...
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