ECB's Nowotny : ECB's Negative Deposit Rate is Lowest Possible Rate

        By Nicole Lundeen
        VIENNA--The European Central Bank's negative interest rates for overnight deposits are the absolute lowest rates the eurozone's central bank can set, Governing Council Member Ewald Nowotny said Monday.
        Low interest rates are a problem facing many of the world's economies, Mr. Nowotny said. In 2014, the ECB put into place several measures to fight the low interest rates in the eurozone and the measures have started to take effect, Mr Nowotny added.
        The ECB's goal isn't to create a unified interest rate across eurozone member countries, Mr. Nowotny said. One risk that the ECB has been successful in reversing is the perceived risk of a redenomination, the collapse of the euro as a currency and a return of currency bloc members to their national currencies, Mr Nowotny said.
        Mr Nowotny, who is also governor of the Austrian central bank, added that Austrian households have profited from the lower interest rates for loans--the lowest in the euro zone.
        Mr Nowotny was speaking at the release of the Austrian central bank's Financial Stability Report.
        Write to Nicole Lundeen at nicole.lundeen@wsj.com
        (END) Dow Jones Newswires

        December 15, 2014 04:39 ET (09:39 GMT)

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