24 Apr 2014
ECB's Draghi: Negative deposit rate a possibility
FXStreet (Łódź) - ECB head Mario Draghi suggests that “undue tightening of policy could be offset with lower rates,” including negative deposit rates.
• “The exchange rate is not a policy target, but a rise in the exchange rate, all else being equal, implies a monetary tightening.”
• Additional measures might be needed if monetary policy transmission is further impaired, such as a “targeted” LTRO or an ABS purchase program, Draghi suggests.
• The Governing Council will consider changing the frequency of the monetary policy meetings.
• “The exchange rate is not a policy target, but a rise in the exchange rate, all else being equal, implies a monetary tightening.”
• Additional measures might be needed if monetary policy transmission is further impaired, such as a “targeted” LTRO or an ABS purchase program, Draghi suggests.
• The Governing Council will consider changing the frequency of the monetary policy meetings.