No. That was not a typo, dear readers. The inflation rate in Germany nosedive from 1.2 to 0.6 pct in May. The Euro zone inflation rate is at 0.5 pct. So the ECB expected to cur rates. Overnight rates for banks to “park cash at the ECB” would be negative. Now it’s at 0.
The purchasing managers index fell from 53.4 to 52.2 pct in April. A reading above 50 indicates expansion.
So that must mean that once May figures.for PMI released, it should be below 50?
Re: You have to pay to park your cash
Sorry forgot to add source. WSJ June 3
Re: You have to pay to park your cash
THis article related to your post made an excellent read .
Less than zero: Europe introduces negative interest rates to save its economy
I heard Its a good thing that ECB put forward, getting the banks to pay up for “parking” their money. Hopefully this will encourage the banks to do something else with all this money they are sitting on. For example lending will open up a bit more and increase activity
Re: You have to pay to park your cash
Very food find CB. I agree.