ECB takes the deposit rate negative
On 5 June 2014 the ECB cut the deposit facility rate below zero. In the causal graph this event weakens Household Purchasing Power, a driver that weakens Global Consumer Price Inflation (annual %) — an improving welfare path.
Read the full account
On 5 June 2014 the ECB cut the deposit facility rate below zero. Banks and savers paid. Credit conditions eased. The cut is a completed monetary-policy act.
Who was responsible
Contribution type and responsibility level for each recorded actor — not sole-author shorthand.
Mario Draghi
PersonDirect responsibility
responsibility level 0.65 · verified
He pushed negative rates against German resistance. The Council voted.
What changed
Fact → Driver → Indicator. Relationship strength orders the paths; it is not the observed indicator movement.
- FactECB takes the deposit rate negative
- weakensDriverHousehold Purchasing Power
- weakensIndicators (2)Global Consumer Price Inflation (annual %)
impact weight 0.3 · Effect from 5 June 2014 · verified
Negative deposit rates reduce saver income even as they ease borrower costs — recorded here on the saver-income side as a cost.
Weakens · Relationship strength 0.12 (weight 0.3 × strength 0.4)
Observed
5.8 annual % change in CPI · 2.3 above the normal line (2024)
Better than normal5 readings, 2020–2024: rose from 3.3 annual % change in CPI to 5.8 annual % change in CPI.
Moving normal line
- Worse
Weakens · Relationship strength 0.1 (weight 0.3 × strength 0.35)
Observed
10.4% · 10.2 above the normal line (2024)
Worse than normal7 readings, 2018–2024: fell from 11.1% to 10.4%.
Above normal = worse
Evidence
The sources behind this fact and its verification state.
- 1.Reuters — ECB takes rates negativeReuters · High credibility · verified
- 2.ECB — 5 June 2014 monetary-policy decisionsEuropean Central Bank · High credibility · verified
Causal path
How this event connects to drivers and indicators in the graph.
- ActorMario Draghi
- contributed toFactECB takes the deposit rate negative
- weakensDriverHousehold Purchasing Power
- weakensIndicatorGlobal Consumer Price Inflation (annual %)
Cite this page
Factrail. (2026). ECB takes the deposit rate negative. Factrail. https://factrail.ai/facts/ecb-negative-rates-2014
https://factrail.ai/facts/ecb-negative-rates-2014
Accessed 15 October 2026.
By the Factrail desk · Method: how we source and score · Last reviewed
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