ECB to Double Minimum Bank Reserve Ratio from 1% to 2%, Cutting Interest Costs

According to six sources disclosed to Jin10 on July 1, the European Central Bank is considering doubling the minimum reserve ratio that banks must hold in non-interest-bearing accounts from 1% to 2%. The move aims to reduce the ECB's interest payment costs and absorb excess liquidity. A decision on the proposal is expected before autumn, though ECB Governing Council has not yet formally discussed the matter.
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