April 12, 2019 / 2:42 PM / 2 months ago

ECB's Praet still open to studying idea of tiered deposit rate

WASHINGTON (Reuters) - The European Central Bank is open to studying the idea of a tiered deposit rate, which could shield lenders from some of the cost of negative interest rates, ECB chief economist Peter Praet said on Friday.

“Tiering is not an instrument... It is something... that can mitigate some of the negative consequences of some of the policies we’ve put in place,” Praet said told a conference. “For tiering, the attitude is for openness, to listen to what it is.”

Sources close to the discussion told Reuters earlier that policymakers are not enthusiastic about a multi-tier deposit rate and no real discussion on the issue has taken place yet.

Reporting by Balazs Koranyi; Editing by Francesco Canepa

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