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ECB (European Central Bank) cuts rates to BELOW zero


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(edited)

interest rate NEAR zero ... i know

interest rate BELOW zero ... 1st time i heard

 

you put money in the bank .... you kena penalty .... lol .... huat ah!

 

spend $$$ spend $$$ spend $$$ [thumbsup]

stock market cheong ... will more $$$ come to singapore [sly]

 

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FRANKFURT — The European Central Bank (ECB) yesterday cut interest rates to record lows, as it imposed negative rates on overnight deposits to cajole banks into lending more to fight the risk of deflation.

The cut — the first time the ECB has set a negative deposit rate that effectively charges banks to deposit funds with the central bank — was a response to a slowdown in inflation far below the ECB’s target of close to, but below, 2 per cent and to weak eurozone lending. That is a combination that risks dragging the bloc into an economic quagmire.

The ECB lowered the deposit rate to minus 0.1 per cent from zero effective next Wednesday, cut its main refinancing rate by 10 basis points to 0.15 per cent and the emergency borrowing rate by 35 basis points to 0.40 per cent.

 

ING analyst Carsten Brzeski said on CNBC TV: “The ECB just did it and entered new unchartered territory … It demonstrates the ECB’s determination and ability to act.”

 

European stock markets jumped in mid-afternoon trade following the ECB’s unprecedented move, with France’s CAC adding 1.5 per cent, Germany’s DAX gaining 0.5 per cent and London’s FTSE rising 0.2 per cent. Across the Atlantic, the Dow Jones Industrial Average was up only 0.1 per cent in early trade.

 

Meanwhile, the euro fell 0.2 per cent to a four-month low of US$1.3570.

 

The ECB lowered its forecast for eurozone inflation yesterday, expecting it to reach 1.4 per cent in 2016, further from its target.

The new medium-term ECB staff projections are lower than those published in March, when ECB staff forecast 1.5 per cent for 2016.

 

The ECB also revised projections for this year’s inflation to a mid-point of 0.7 per cent from the previous 1 per cent. It predicted inflation next year at 1.1 per cent, lower than the earlier estimate of 1.3 per cent.

 

The ECB also forecast the eurozone economy growing by 1.8 per cent in 2016, after 1.7 per cent next year and 1 per cent this year.

Edited by pChou
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Hypersonic

They are encouraging ppl to spend so as to stimulate economy ...

 

ECB cuts rates, ours banks here slowly increasing rates..

 

Arising from ECB, garmen will probably say we will maintain 2.5% rate for CPF, very good liao, see, so much higher than other countries :D

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Turbocharged

I need money!

I hope the Singapore Ah Long operate this way by charging negative interest too.

 

Pay me to borrow money from Ah Long.

 

 


They are encouraging ppl to spend so as to stimulate economy ...

ECB cuts rates, ours banks here slowly increasing rates..

Arising from ECB, garmen will probably say we will maintain 2.5% rate for CPF, very good liao, see, so much higher than other countries :D

 

Goal poles have previously been shifted for many times.

 

I hope they don't charge negative interest for CPF. That will be the mother of all goal post-shiftings.

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(edited)

Hosayliao,

 

EurSgd go back to 1.60s level, long weekend can chiong Europe liao

Edited by Throttle2
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Hypersonic

Hosayliao,

 

EurSgd go back to 1.60s level, chiong Europe liao

Yeah :))

Remember can only buy $600 worth of goods if not paying GST

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Turbocharged
(edited)

Hosayliao,

 

EurSgd go back to 1.60s level, long weekend can chiong Europe liao

Euro 1.6? Ah Bengs will queue up yo buy merc, BM and audis. Edited by Albeniz
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(edited)

how can asia is not benefiting?

so much money in the pool ... sure got plenty to pour into longkang ... i mean asia ... lol

post-7984-0-18137600-1402131130_thumb.jpg

Edited by Wt_know
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Turbocharged

Banks and women are the same, if they show you zero or negative interest rate, it means they do not want your liquid assets deposited in them.

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Yeah :))

Remember can only buy $600 worth of goods if not paying GST

 

Buy there and immediately use, no need to pay GST liao....wooohoooo!

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time to go swiss to whack rolex liao

expect bigger discount from grey dealers? [sly]

Rolex in Asia is cheaper generally
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