ECB's Visco suggest that negative rates may help Eurozone

(Source: Reuters)

The European Central Bank's Ignazio Visco has said that negative deposit rates could help the Eurozone economy according to Reuters. Earlier this month ECB president Mario Draghi hinted that negative rates may come into play:

“There are several unintended consequences that may stem from this measure,” Draghi said of a negative deposit rate, while adding that the ECB is “technically ready” for such a measure. “We will address and cope with these consequences if we decide to act. And we will again look at this with an open mind and we stand ready to act if needed.”

When asked if the main rate could come down below 0.5 per cent, Draghi repeated that the bank would “stand ready to act if needed”.

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