European Central Bank imposes negative interest rates on banks
Angela Monaghan,Thursday 5 June 2014 08.30 EDT
The European Central Bank has made the unprecedented move of charging banks to deposit money in a dramatic attempt to inject life into the eurozone's flagging economy and ward off the threat of a damaging deflationary spiral.
In what marks an historic first for the troubled region, president Mario Draghi and his colleagues on the governing council cut the deposit rate to -0.1% from zero, meaning banks will now have to pay for the privilege of parking their money with the ECB.
Full story... http://www.theguardian.com/business/2014/jun/05/european-central-bank-cuts-deposit-rates
Central bank hopes the unprecedented move will encourage banks to lend more to consumers and businesses to get the economy moving
