- But is still discussing negative rates
- Won’t cut deposit rate without cutting benchmark rate
- Negative rates is one potential element
- Too early to say what rate cut trigger might be
- Says Euro area GDP data is good news
That’s an interesting line from Nowotny as it potentially ties up any cuts together. I’m not sure if that line will be standard across all the board members though. The deposit rate cut would be more to do with getting bank to start shifting the cash piles into the economy rather than a direct tool to combat low inflation, though you would expect some inflation as a result.
