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Reuters is reporting that ECB rate setters converge on December deposit rate cut.
The only question is … how low will they go?
The ECB Deposit Facility Announcement Rate is already negative.
Both the Federal Reserve and the ECB have near zero policy rates, although the ECB’s is negative.
Inflation in both the Eurozone and the US are at zero.
There are 11 EMEA countries with negative 2 year sovereign yields.
Apparently, the ECB rate setters will be having a Limbo Party.
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