Central Banks
ECB Is Leaning Toward Keeping Banks' Minimum Reserve Level at 1%
- Hawks’ push is struggling to gain momentum, people say
- Lagarde said MRR would be in framework overhaul announcement
European Central Bank headquarters in Frankfurt, Germany.
Photographer: Thomas Lohnes/Getty ImagesThis article is for subscribers only.
The European Central Bank is leaning against any immediate change in the amount of money lenders need to park with it interest-free, removing for now the threat of a hit to bank profitability.
Ahead of a crucial meeting on Wednesday on a revamp of the ECB’s framework for implementing monetary policy, a push by some hawkish officials to increase the so-called Minimum Reserve Requirements, or MRR, from the current 1% has struggled to gain momentum, according to people with knowledge of the matter.