Negative deposit rate ‘turbocharges’ QE, economists say
Former ECB board member Bini Smaghi says negative rate ‘creates a multiplier effect’
The European Central Bank's decision to impose negative deposit rates has "turbocharged" the effect of quantitative easing (QE), according to private sector economists at the Institute of International Finance Europe Summit in Frankfurt today (June 25).
In a panel chaired by Lorenzo Bini Smaghi, formerly an ECB executive board member, the group of economists gave a largely positive account of QE, but stressed the importance of the negative deposit rates in the policy mix.
The ECB began buying
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