The European Central Bank (ECB) has been lowering the interest rate on its deposit facility, first to -0.1% in June 2014, then to -0.2% in September and eventually to -0.3% in December 2015.
But what difference does it make whether it is -0.1% or -0.3%, as long as it is negative? I would expect anyone to withdraw all their money immediately as soon as the interest rate gets negative, for you would always be better off just keeping it for yourself, even if the interest rate is just -0.0001%.
I do understand the intention of the ECB, but I do not understand why lowering the already negative interest rate further should make it more effective.