ECB cuts interest rate on government deposits

The European Central Bank said on Tuesday it would cut the maximum rate it pays on deposits held by governments to give them an incentive to redeploy that cash into the financial system.

Starting on May 1, the ECB will apply a 20 basis-points discount to the Euro Short-Term Rate (ESTR), which is currently the ceiling rate on government deposits.
Source: Reuters (Reporting by Francesco Canepa, editing by Ed Osmond)