[B]A zero refi rate is not the most likely scenario[/B] … Several major central banks, including the Federal Reserve, the Bank of Japan and the Swiss National Bank, have already embarked on a (near) zero interest rates policy (ZIRP) (see "The Fed Lady Sings", The Global Monetary Analyst, December 17, 2008). While we would not categorically rule out that the ECB could also be forced to resort to such extreme measures, we don’t believe that ZIRP is the most likely scenario for the official refi rate. It is, however, possible for the overnight rate (EONIA – the Euro OverNight Index Average, which is the weighted ... (full story)