14 Oct 2013
ECB's Bonnici says central bank ready to introduce negative deposit rate
FXstreet.com (Barcelona) - ECB Governing Council member and Malta's central bank head Josef Bonnici said on Monday that the ECB is prepared to introduce the negative deposit rate, although such a move could have adverse implications.
"It may have some consequences which may have to be taken into account, but it is possible to go negative and we are prepared to go negative,” Bonnici declared, adding that “there are pluses and minuses to this negative rate."
Furthermore, the Governing Council member assured that in the light of the ECB's current low interest rates, the reduction should not have so much significance. He also expressed confidence that inflation would stay “in a reasonable area between 1% and 2%.
"It may have some consequences which may have to be taken into account, but it is possible to go negative and we are prepared to go negative,” Bonnici declared, adding that “there are pluses and minuses to this negative rate."
Furthermore, the Governing Council member assured that in the light of the ECB's current low interest rates, the reduction should not have so much significance. He also expressed confidence that inflation would stay “in a reasonable area between 1% and 2%.