> What happens when interest rates are unable to fall further? Are we already at the end of the ball? How much higher can it go? One interesting option is diff

> What happens when interest rates are unable to fall further? Are we already at the end of the ball? How much higher can it go? One interesting option is different policy rates for different sectors of the economy. Last year during the COVID markets crisis the ECB used[1] this type of mechanism to keep a wide availability of credit. [1] https://www.ecb.europa.eu/mopo/implement/omo/tltro/html/index.en.html https://www.ecb.europa.eu/mopo/implement/omo/tltro/html/inde... > How do they work? The TLTROs are targeted operations, as the amount that banks can borrow is linked to their loans to non-financial corporations and households. In TLTRO III, similarly to TLTRO II, the interest rate to be applied is linked to the participating banks’ lending patterns. The more loans participating banks issue to non-financial corporations and households (except loans to households for house purchases), the more attractive the interest rate on their TLTRO III borrowings becomes.