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Constancio Signals ECB May Mitigate Sub-Zero Rates for Banks

  • ECB sees overall impact of policy as positive for lenders
  • Communication to be more cautious around March 10 meeting
Updated on

The European Central Bank could take steps to ease the impact of its negative interest-rate policy on financial institutions if it decides to add more stimulus, Vice President Vitor Constancio said.

“In looking to what can be done if we decide to ease further, we’ll have to mitigate the effect on banks as other countries have done,” Constancio said at an event in New York on Friday. The “overall effect” of ECB policy has been positive for lenders, he said.