World Economy

ECB Won’t Cut Deposit Rate

ECB Won’t Cut Deposit RateECB Won’t Cut Deposit Rate

The European Central Bank will not cut its deposit rate further into negative territory at its December monetary policy meeting, according to the vast majority of traders polled by Reuters on Monday. With the euro weakening on expectations the US Federal Reserve will hike rates in December, 18 of 21 respondents said the ECB would not cut the deposit rate to try to boost inflation, something its President Mario Draghi said it was prepared to do. “I do think that they (ECB) might do something on the quantitative easing side,” said a trader at a big bank.