Historical rate reduction unleashed. BNY Mellon’s Chief Currency Strategist and Regional Head EMEA outline implications and rationale.
This past week, the European Central Bank (ECB) took a momentous step as a major central bank in introducing negative interest rates. Along with other measures, the ECB is aiming to stimulate growth and inflation in the Eurozone.
Listen to Simon Derrick, Chief Currency Strategist of BNY Mellon, and Gerry Barber, Regional Head EMEA, Cash Solutions Group, discuss the rationale and implications of this move.
My own view is that over time the euro should trade significantly lower than it is today. However, given the price activity over the past few days, we're not certain that we're quite at the point where that weakness will emerge.
Simon Derrick, Chief Currency Strategist, BNY Mellon Markets Groups
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