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15 Apr 2015
Will not lower deposit rate, no signs of bubbles – Draghi
FXStreet (Mumbai) - The European Central Bank (ECB) President Mario Draghi, when asked about the negative bond yields in his press conference, replied that the bank is vigilant about the effects of the prolonged period of low rates, but sees no signs of a bubble in the bond markets so far.
The President further added bank will not lower the deposit rate from the current level of -0.20%, even though the questions are being raised regarding the availability of bonds with yields above -0.20%.
The ECB is currently buying bonds with yields negative up to the deposit rate(-0.20%). When asked about the conditions in which the monetary policy stance will change, Draghi said it is too early to discuss the change in policy stance and that the QE program is intended to run through 2016.
The President further added bank will not lower the deposit rate from the current level of -0.20%, even though the questions are being raised regarding the availability of bonds with yields above -0.20%.
The ECB is currently buying bonds with yields negative up to the deposit rate(-0.20%). When asked about the conditions in which the monetary policy stance will change, Draghi said it is too early to discuss the change in policy stance and that the QE program is intended to run through 2016.