Weber Says Cutting ECB Rate Below 1% May Paralyze Money Market

Whew, boy am I happy we have these German university professors running the ECB. I can sleep soundly knowing we will never have any inflation ever again

http://www.bloomberg.com/apps/news?pid=20601087&sid=a1wo7m5yeDOI&refer=home

April 15 (Bloomberg) -- European Central Bank council member Axel Weber said cutting the bank’s benchmark rate below 1 percent risks bringing the interbank money market to a standstill.

“I’m critical of reducing the main refinancing rate below 1 percent” because there would be practically no incentive for banks to lend to each other, Weber said in a speech in Hamburg today. “Therefore, the risk exists that the private interbank market would become completely paralyzed.”

 

I agree with the deflation thesis here, these guys are on crack