Flash: ECB technically prepared to cut - BBH

FXstreet.com (London) - Research teams at BBH said the ECB says that it is technically prepared to cut the deposit rate below zero, but it is obviously reluctant to do so and for good reason.

Key Quotes:

“No major central bank has done this and the issue is not only intended and unintended consequences but also foreseeable and unforeseeable effects”.

“It could further harm the fragile financial institutions. It could unsettle the global capital markets”.