BERLIN (Reuters) – German Finance Minister Olaf Scholz on Thursday sought to calm savers worried that the ever-lengthening period of low interest rates in the euro zone could see them paying negative interest on their deposits.
The European Central Bank is set to unveil fresh stimulus measures on Thursday to prop up the ailing euro zone economy.
Hours before the ECB’s monetary policy meeting, Scholz told the Passauer Neue Presse newspaper that savers need not reckon with negative interest rates “across the board.
“Most contracts that customers have with their banks do not currently allow such penalty rates, so the problem is not acute,” Scholz said. “Banks’ boards are wise enough to grasp what they would trigger with such penalty rates.
“I don’t think private customers in Germany need to reckon with negative interest rates across the board. We are monitoring the situation and are considering our options to act,” he added.With other major central banks easing monetary policy, Germany at risk of falling into recession and inflation expectations sliding, ECB President Mario Draghi has all but promised more support, putting all of the bank’s remaining tools in play.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.