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Explainer: How does negative interest rates policy work?

European Central Bank holds a news conference in Frankfurt
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LONDON (Reuters) - The European Central Bank doubled down on its negative rate policy on Thursday, meaning banks will now have to pay 0.5% interest simply for depositing much of their spare cash with it - an attempt to make them lend more to kickstart the economy.While such a policy is widely considered valid only for economies in Europe and Japan with chronically low inflation and weak growth,..
Date Published: Sep 13, 2019
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