MADRID | By Ana Fuentes and Jaime Santisteban | It’s a radical move because that’s what the eurozone needs. Besides cutting the ECB’s base interest rate from 0.25pc to 0.15pc, Mario Draghi also reduced deposit facility to -0.1pc. So EZ banks will either boost credit lending or pay to leave money in the central bank. Also, he offered banks new long-term funds. Market makers tell us what they make of the much-awaited package.
MADRID | By Julia Pastor | In a historic move, the ECB cut the benchmark rate to 0.15 percent from 0.25 percent, and reduced the deposit rate to minus 0.10 percent from zero, becoming the world’s first major central bank to use a negative rate and pushing entities to increase credit lending. Spanish Ibex35 reacted to the news with a 0,8% increase.
MADRID | By Francisco López | In an attempt to end the financial fragmentation of the markets, the ECB makes banks to move their money injected via QE. From now on, marginal lending facility of the ECB would cost them money. The German banks have 100,000 million deposited with the ECB.