Negative bank’s deposit rate European banks are currently receiving an interest rate of zero percent on their deposits at the European Central Bank (ECB). The ECB is considering changing this to a negative deposit rate, given Europe’s weak economic growth and low inflation.

Source: The Wall Street Journal, 22 November 2013 Think about the deposit rate paid by the European Central Bank:

With a nominal interest rate of zero percent, describe the real interest rate received on bank deposits at the ECB.

Is it possible for banks to earn a positive real interest rate if the nominal interest rate is negative?