Not exactly news as the market has been chattering about negative deposit rates ever since the ECB cut that rate to zero earlier this month and Denmark cut its deposit rate to -0.20% the same day.
The ECB is trying to spur bank lending but a move to negative rates in the near-term would likely have the opposite impact. It would be a signal of how deep the crisis has become and would be taken as a sign of separation from the ECB.
As President Draghi told us at the weekend, there are no taboos regarding ECB policy. Stay tuned.
