Cœuré explains motivation for negative deposit rates
ECB official say deposit rate may be 'most important' policy rate
Benoît Cœuré believes the deposit rate "may be the most important policy rate" a central bank has when it is faced with an environment of excess liquidity, a situation the European Central Bank (ECB) faces now.
As an ECB executive board member, Cœuré was a member of the governing council that elected to cut the rate on ECB's deposit facility to -0.10% in June, and then by a further ten basis points to -0.20% on September 4.
This has created a situation where banks that want to hold cash over and
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