Monetary policy: ECB demands higher penalty interest from banks

The European Central Bank (ECB) wants to tackle the weak economy and low inflation with new ammunition: The Governing Council decided at its meeting on Thursday, the deposit rate at which commercial banks park excess money at the central bank, from -0.4 percent to lower now -0.5 percent. In effect, financial institutions are paying a higher penalty rate.

In addition, the central bank wants to resume the controversial bond purchases - and use from November monthly 20 billion euros.

Soon more on SPIEGEL ONLINE.