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Lagarde: Cutting remuneration on min reserves makes policy more "efficient"

ECB
  • Q: How much of the decision on lowering the remuneration on reserves owes to concerns about central bank losses?
  • A: We have a public duty to make the implementation of monetary policy as efficient as possible. But cutting remuneration on minimum reserves only, we will reduce the amount of interest we pay so the implication of our policy becomes more efficient. It is going to have no impact on our policy stance, which is determined by the remuneration on excess reserves.

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