ECB’s Easing May Not Boost the Economy, Bloomberg Intelligence Says

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The $80 billion increase in European Central Bank current-account holdings, concurrent with a $110 billion drop in deposits, is just the first stage in commercial banks’ repositioning of assets under the ECB’s new tiering system, according to Bloomberg Intelligence. In 2012, the last time the central bank adjusted relative interest rates, lenders shifted more than $400 billion. But moving funds between accounts does little to stimulate the economy, and further incentives are required to encourage corporate lending, BI says.