ECB cuts benchmark interest rate to 0%
The European Central Bank today cut its benchmark interest rate (refinancing rate) to 0% from 0.05%. The refinancing rate is the rate at which the ECB lends money to commercial financial institutions like banks. The bank also slashed its deposit rate by 0.1% to (-)0.40%. With the negative deposit rates, banks will be charged to deposit money with the Eurosystem.