Want to borrow money with negative interest?

(June 05, 2014 )

'There are few instances of central banks using negative rates and certainly it has never been done by so prominent a central bank'- TD Bank economist Andrew Labelle

Europe is still very much in nead of economic stimulous, more so than many would have thought.  The European Central has cut it's lending rate to banks on their deposits to - 0.15%.  "President of European Central Bank Mario Draghi has agreed to cut the refinancing rate to a record low of 0.15 per cent and impose a negative (-0.15%) deposit rate for banks."  The hopes is that banks will stop hoarding cash and loosing up on lending in order to stimulate the economy.   Some worry though, that banks will just peg this as a new cost of doing business and pass the fees onto consumers.  


Full CBC news article: http://goo.gl/iWIHdR