Business deposit rates fell even lower to a negative level in April, after falling to a negative level in March, for the first time in the history of the banking system.
According to Central Bank data, one-year corporate deposit interest rates fell to -0,04% in April from 0,01% the previous month. This means that companies pay the credit institution in which they hold their cash.
In contrast, interest rates on household deposits remained unchanged at 0,05% in April, which is also the lowest point in history.
For the past two years, the banks had started to impose negative interest rates on corporate deposits, while there were thoughts of imposing a negative interest rate on household deposits in excess of € 100.000. The negative interest rates were charged after the European Central Bank's negative interest rate policy made commercial banks pay the ECB a 0,5% interest rate to deposit their liquidity.
However, negative interest rates are now coming to an end, as the ECB, through its President Christine Lagarde, has announced that the period of negative interest rates will end in July, in an effort to tame inflation in the Eurozone, which has reached historic highs. flat. Ms. Lagarde herself has said that interest rates are expected to return to zero or above zero at the end of the third quarter of this year.
Source: KYPE