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“The ECB cut its key interest rate from 0.75 per cent to five per cent,” on May 2, which as Die Presse points out, will bring interest rates “to a record low”. The newspaper adds that European Central Bank President Mario Draghi “has not ruled out further rate cuts” in the future.
The Viennese daily notes that the measure will be of benefit to Eurozone banks, which, “for at least a year, will be able to borrow as much as they want from the ECB under very favourable terms.”
But savers will be the losers, argues the newspaper —
The historic low in interest rates will have catastrophic consequences. Taking into account inflation and taxes […] savers are making a loss. Negative real interest rates caused Austrian savers to lose €10bn between 2010 and 2012.
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