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3/7, 3:35 PM (Source: TeleTrader)
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Draghi: Italy contributed to euro area slowdown

Mario Draghi, President of the European Central Bank (ECB), said on Thursday that the slowdown of the Italian economy was a large factor in the slashing of EU's GDP growth forecast.

The global slowdown in world trade and accompanying lower confidence due to trade tension filtered through countries and sectors, the central banker explained, with the automotive sector in Germany as an example of that.

Asked about the negative deposit facility rate of -0.4% for TLTROs, Draghi elaborated that the "potential effect that negative rates may have on banks balance sheets is complex," and may depend on the business model of the bank. He added that negative rates have proved to be a "powerful instrument" in economic recovery.

Breaking the News / NI