Negative Interest Rate Policy by ECB A case Study
Abstract
The European Central Bank announced several measures to inject life into the Euro zone stagnant economy. One such measure is the decision to cut the deposit rate for the region's commercial banks from zero to minus 0.1 per cent. Something unusual and never heard before is this negative interest rate policy. It has lot of expectations and also brings forward a lot of fear along with it. With the entire Euro zone EC’s measure is being seen as a gamble. Everyone is watching what impact will this policy? Will it bring bolster the economy and it will move forward or will it hit hard and push it back to uncertainty? Negative interest rate was present in Nordic countries having minimal effect on expected results. What can happen to Europe and is this policy the best that ECB had?
Keywords: European Central Bank, Negative interest rate, Euro zone economy
References
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