{"id":380,"date":"2013-11-22T08:08:50","date_gmt":"2013-11-22T08:08:50","guid":{"rendered":"http:\/\/www.asadkarim.co.uk\/?p=380"},"modified":"2013-11-22T08:08:50","modified_gmt":"2013-11-22T08:08:50","slug":"the-european-central-bank-potential-negative-interest-rates","status":"publish","type":"post","link":"https:\/\/www.asadkarim.co.uk\/?p=380","title":{"rendered":"The European Central Bank: Potential Negative Interest Rates"},"content":{"rendered":"<p>On Bloomberg on Wed 20th Nov, was an article about the ECB considering negative interest rates. According to the article, the European Central Bank &#8220;will offer&#8221; <strong>-0.1%<\/strong> on deposits<\/p>\n<p>[<a title=\"Bloomberg Article\" href=\"http:\/\/www.bloomberg.com\/news\/2013-11-20\/ecb-said-to-consider-mini-deposit-rate-cut-if-more-easing-needed.html\" target=\"_blank\">http:\/\/www.bloomberg.com\/news\/2013-11-20\/ecb-said-to-consider-mini-deposit-rate-cut-if-more-easing-needed.html<\/a>]<\/p>\n<p>What this means, is that clearing banks in the <strong>\u20ac<\/strong>uro Zone who deposit\u00a0cash with the European Central Bank will be effectively charged for holding their money with the central bank, thus negative interest rates.<\/p>\n<p>e.g. <strong>\u20ac1,000,000<\/strong> on deposit (\u20ac1m) over 12 months will become <strong>\u20ac999,000<\/strong>.<br \/>\nYes a loss of <strong>\u20ac1,000 Euros<\/strong>.<\/p>\n<p>One potential positive side effect of negative interest rates, is that the clearing banks may actually decide not to deposit excess cash with the European Central Bank, and instead use the cash to create loans for business, industry and individuals to kick start employment and economic growth.<\/p>\n<p>Perhaps the economic state of the <strong>\u20ac<\/strong>uro zone is worse than what is actually reported, and the European Central Bank is taking drastic and radical action to fight economic stagnation and the record unemployment that is affecting so many people, and threatens to create lost generation.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On Bloomberg on Wed 20th Nov, was an article about the ECB considering negative interest rates. According to the article, the European Central Bank &#8220;will offer&#8221; -0.1% on deposits [http:\/\/www.bloomberg.com\/news\/2013-11-20\/ecb-said-to-consider-mini-deposit-rate-cut-if-more-easing-needed.html] What this means, is that clearing banks in the \u20acuro Zone who deposit\u00a0cash with the European Central Bank will be effectively charged for holding their [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-380","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/380","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=380"}],"version-history":[{"count":1,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/380\/revisions"}],"predecessor-version":[{"id":381,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/380\/revisions\/381"}],"wp:attachment":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=380"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=380"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=380"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}