Responding to press conference questions, ECB President Mario Draghi has said the ECB is ‘technically ready’ to bring interest rates below zero.
Yesterday, Bloomberg reported rumors that the ECB is ready to act. Today, Draghi denied that there is anything new happening on this front, and ECB Board member Asmussen said he’d be cautious about using negative rates.
While traders keep trying to guess Draghi’s next move, one may want to consider, one more time, the effects of negative interest rates.
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