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ECB's Nowotny says bank could hike deposit rate before main refinancing rate: report
March 16, 2017 / 7:01 PM / 8 months ago

ECB's Nowotny says bank could hike deposit rate before main refinancing rate: report

FRANKFURT, March 16 (Reuters) - The European Central Bank (ECB) could raise the deposit rate before its main refinancing rate, Ewald Nowotny, the Austrian ECB council member, told Handelsblatt in an interview.

The ECB may retreat from loose monetary policy but not follow the United States model of finishing bond purchases first, because this model might not transfer well to Europe, said Nowotny, who is the governor of Austria’s central bank.

“The ECB could also raise the deposit rate earlier than the prime rate,” Nowotny told the paper.

Interest rates wouldn’t all have to be increased simultaneously, nor to the same extent, he added.

The Austrian Central Bank could not immediately be reached for comment. (Reporting by Edward Taylor and Balazs Koranyi; editing by Richard Lough)

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