ECB's Weidmann warns against negative deposit rate

Reuters

Bundesbank chief Jens Weidmann warned against reducing the European Central Bank's deposit rate to below zero percent, a German television channel said on Tuesday.

The ECB's deposit rate, which it pays banks to park their money with it overnight, stands at zero.

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"The decision to set to a negative deposit rate would have much more grave consequences than moving towards a zero percent interest threshold," Weidmann, a member of the ECB's policymaking Governing Council, was quoted as saying by Deutsches Anleger Fernsehen.

(Reporting by Annika Breidthardt and Michelle Martin)