Why the ECB’s Long Term Refinancing Operation Is Vital

The European Central Bank began charging banks interest on deposits in June 2014 to encourage them to lend more to companies and consumers. Deposits at the ECB by euro-area banks in excess of required reserves have jumped sixfold since the introduction of negative interest rates, while lending within the currency bloc has barely budged. Cemex Corp Chief Economist Manuel Balmaseda discusses with Bloomberg’s Manus Cranny at the Global Interdependence Conference in Paris.

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