ECB "seriously" considering negative rate

|By:, SA News Editor

Taking the benchmark deposit rate to negative territory "is something we are considering very seriously," says ECB board member Benoit Coeure, quickly adding not to expect too much effect on the economy from the move.

Theoretically, the move would induce banks currently parking money at the ECB (and earning 0%) to find better things to do with it, like lending it into the economy ... theoretically.

The euro (FXE) takes a quick drop, now off 0.5% on the session and buying $1.3575.

Euro ETFs: FXE, EUO, ERO, DRR, EUFX, ULE, URR