ECB’s Villeroy: Negative rates are an effective policy tool

Dhwani Mehta FXStreet

The European Central Bank (ECB) Governing Council member and Bank of France Head Francois Villeroy de Galhau said on Thursday, the negative interest rates are an effective policy tool.

He added that the banks, however, should not pass negative rates to households and firms.

Market reaction

On the dovish comments from the ECB policymaker Villeroy, EUR/USD challenges daily lows below 1.1000.

The spot is down 0.06% at 1.0996, with lows hit at 1.0992.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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