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’On a negative deposit rate at the ECB
Before this month’s ECB interest rate policy decision, a number of analysts had come to think that the ECB might be inclined to adjust its so-called rate corridor.
The corridor is best explained as the difference between the discount rate (or deposit rate) and the central bank’s most punitive rate,
BoE signals no cut on deposit remuneration
New liquidity rules for UK banks, announced by the Financial Services Authority on Monday, slightly overshadowed an announcement from the Bank of England on the subject of reserves accounts.
As the BoE press release noted (our emphasis):
Morgan Stanley: The BoE will cut deposit remuneration
Bank of England governor Mervyn King may have told economists this week, that the Bank had no immediate plans to change the rate paid to commercial banks on sums deposited overnight, but it appears not everyone believes him.