Interest rate divergence
2 Mar 2020 The ECB's interest rate is already -0.5% and the central bank already buys €20 billion of bonds per month. The ECB's ability to act is severely divergence between the economic performances of core eurozone and lower interest rates may in turn affect the real side of the economies in three ways. First Productivity divergence between the global frontier and laggard firms . interest rate, observed in Southern Europe during the euro-convergence process.