Negative rate talk prompts euro dive

Julian Harris
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THE EURO took a dive yesterday after a report said that Brussels’ central bank is considering introducing negative interest rates on overnight deposits.

The exchange rate for the euro against sterling fell from 83.7p to below 83.3p as word spread that banks may have to start paying to park excess cash at the European Central Bank (ECB).

Any cut into negative territory would consist of just a 0.1 per cent reduction, according to a Bloomberg report that cited two anonymous sources.