Tag Archive: euro area monetary policy

Getting ready for tiering

ECB officials have hinted at policy measures aimed at reducing the cost of negative rates for the banking sector, including a tiered system of bank reserves.Although back in 2016 the European Central Bank (ECB) ruled out tiering of bank reserves to mitigate the side effects of negative rates, the situation has since changed, and it could be implemented eventually if policy rates were to remain negative into 2020.

Read More »

Message from the ECB: Enjoy summer!

Today’s Governing Council meeting did little to break the seasonal torpor. We continue to expect its first rate hike to come in September 2019. There was no change in interest rates or forward guidance at today’s ECB Governing Council meeting.

Read More »