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ECB fights deflation danger with negative rates

Published on Jun 5, 2014 8:12 PM
 

FRANKFURT (AFP) - The European Central Bank on Thursday entered into uncharted territory in its battle against deflation, taking one of its key interest rates into negative territory for the first time.

The ECB said in a statement that it is lowering all three of its key interest rates, which have been on hold at record lows all this year.

The bank's decision-making governing council voted to lower the central refi refinancing to 0.15 per cent from 0.25 per cent previously.

The interest rate on the marginal lending facility was trimmed to 0.40 per cent from 0.75 per cent.

European Central Bank (ECB) president Mario Draghi addresses a news conference following the ECB Governing Council meeting in Brussels on May 8, 2014. The ECB on Thursday entered into uncharted territory in its battle against deflation, taking one of its key interest rates into negative territory for the first time. -- PHOTO: REUTERS
 
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