On the Minds of Investors
Top questions on the minds of investors
See what your peers are asking and read answers from our team of Global Market Strategists.
June 21, 2019
How effective would ECB rates cut be?
The U.S Federal Reserve was not the only major central bank discussing interest rate cuts last week, the European Central Bank (ECB) is also toying with the idea of cutting rates in the near future. This has been a slightly surprising development considering the ECB’s main deposit rate is already at -0.4% how effective would further rates cuts be? The answer: not very.
Eurozone overnight rates and government bond yields
Source: ECB Statistics, Tullet Prebon, FactSet, J.P. Morgan Asset Management. Overnight (O/N) rates are as of April 30, 2019. Data are as of June 20, 2019.