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The European Central Bank (ECB) has announced that it will lower its benchmark interest rate to 0.15%, down from the previous 0.25%, and its deposit rate to -0.1%, down from its current rate of zero. The aim is to encourage bank lending and prevent deflation in the Eurozone. The changes will take effect on 11th June. The ECB is the largest bank to introduce negative interest rates and this is the first time one of the major four central banks (US Federal Reserve, ECB, Bank of England and Bank of Japan) have introduced, although they have previously been used in… continue reading