Draghi’s job is price stability, not the truth.
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Mr Draghi has made similar assertions after cutting rates before.It says that the Swiss National Bank currently operates the most negative rate of all the world's leading central banks (minus 0.75 per cent).If the costs incurred by Swiss banks were applied to the eurozone banking system, then the ECB's deposit rate would be much more negative, at minus 1.8 per cent. The ECB could also tier rates. In contrast, the Bank of Japan only charges about 4 per cent of its bank reserves at negative rates, while the Swiss central bank charges about 40 per cent at these rates.As well as tiering rates, Mr Draghi could extend his new targeted longer-term refinancing operation, or TLTRO, which enables banks to borrow from the central bank, at negative rates. This cushions the banks against negative rates by allowing them to take advantage of them too.
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