(That’s Lisa, at Thursday’s European Central Bank press conference)
FT Alphaville asked President Mario Draghi whether the ECB board has considered negative rates (and also the implications of negative yields on German bonds). After all, the deposit rate is now zero.
He first said the ECB does not pre-commit…
…and then, in a follow-up question, Draghi signalled that negative rates belong among the central bank’s non-standard measures. They haven’t discussed negative nominal rates so far.
Which suggests to us — the negativity is still out there.
And at pixel time, the Danish central bank followed the ECB rate cuts by lowering its deposit rate into negative territory, -0.2 per cent.