Why This May Be the Week the ECB Finally Cuts Rates

Why This May Be the Week the ECB Finally Cuts Rates

A cut would make the ECB's deposit rate, currently 0, negative – effectively charging companies to deposit money. While this could mean that banks put their money to work elsewhere, it could also mean that ordinary savers have less incentive to put money aside.
The headline refinancing rate is currently 0.75 percent, but at the moment this has less effect on short-term borrowing than the deposit rate because cheap ECB loans have already made borrowing money less expensive.