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Jun 04, 2020 PRINT EDITION
World

Dutch parliament tells ECB's Draghi it opposes 'tiered' rates  

AMSTERDAM: Dutch parliament on Wednesday sent a formal letter to the European Central Bank underlining its opposition to

September 11, 2019

AMSTERDAM: Dutch parliament on Wednesday sent a formal letter to the European Central Bank underlining its opposition to a policy under consideration that lawmakers think is contrary to Dutch interests.

The letter, addressed directly to ECB President Mario Draghi as the bank's governing council gathers for a policy meeting, ignores the convention that central banks should be free of political pressures.

The letter included a translation into English of a motion passed by Dutch parliament that says offering banks "tiered", or preferentially high, interest rates on deposits held at the ECB would be unfair to pension funds that are currently forced to invest at negative rates.