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ECB's Draghi: Nothing new on negative deposit rates

Thursday, 21 Nov 2013 | 5:14 AM ET
Nothing new on negative rates: Draghi
Thursday, 21 Nov 2013 | 6:33 AM ET
European Central Bank president Mario Draghi, warns people from inferring anything regarding negative interest rates on deposit facilities from what he says in his speech, stating that "there is no news".

European Central Bank President Mario Draghi said on Thursday that there was "no news" on negative deposit rates, sending the euro up to a session high after rumors that the bank would move to cut the rate it pays lenders to hold money overnight.

Bloomberg News cited two unnamed sources on Wednesday as saying that the ECB was considering reducing the rate for lenders who deposit excess cash at the bank to -0.1 percent, from zero. The euro tumbled on the report.

Draghi cautioned media against inferring anything from what he said at a speech in Berlin.

"Don't try to infer from what I say anything on the possibility of negative rates on the deposit facility," Draghi said at an event organized by German newspaper Sueddeutsche Zeitung. "As I said at the press conference, this was discussed at the last monetary policy meeting and there are no news since then."

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