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ECB leaning towards rewarding banks who lend, sceptical on tiered rate - sources
European Central Bank policymakers are increasingly leaning towards rewarding banks for lending to households and businesses but are mostly sceptical about giving lenders a reprieve from a charge on their idle cash, four sources told Reuters. The sources said rate-setters, who met in Frankfurt on Wednesday, were now open to offering a zero or even negative interest rate to banks that pass through into the economy the cash they borrow under the ECB’s third Targeted Long-Term Refinancing Operation (TLTRO III), due to start in September. ECB President Mario Draghi said on Wednesday that policymakers did not discuss ... (full story)