Draghi says there was a prevailing consensus to cut rates 25 basis points, which implies that it wasn’t a unanimous decision.
- Draghi says ECB is technically ready to cut deposit rates
- ECB has an open mind on negative deposit rate
- There are possible consequences to deposit rate cut but we are prepared to act to mitigate these
The euro is falling on the prospect of a deposit rate cut. Draghi didn’t necessarily foreshadow a cut in the deposit rate but said it was possible if the ECB decides to do so.