Negative rates on deposits would force Eurozone core banks to repay their LTRO funding

There is concern among some Eurozone banks that the ECB may push the deposit rates on excess reserves into negative territory next year. In fact the 12-month EUR OIS rate (the so-called EONIA swap rate), which is the market expectation of where the overnight rates will be next year, briefly dipped…

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Negative rates on deposits would force Eurozone core banks to repay their LTRO funding