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ECB supports growth and announces further rate cuts

2019-09-12T16:44:23.999Z

The European Central Bank confirms its commitment to economic growth. The risks of recession remain low, she estimates, but they are increasing. Where a series of measures expected to support economic activity.


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European Central Bank (ECB) President Mario Draghi at the Board of Governors meeting in Frankfurt on Wednesday 12 September 2019. REUTERS / Ralph Orlowski

The European Central Bank confirms its commitment to economic growth. The risks of recession remain low, she estimates, but they are increasing. Hence a series of expected measures to support economic activity.

The key rates of the European Central Bank are already at their lowest for three years. They will be even more so, at least one of them. The one concerning the excess deposits that the banks keep within the ECB: already negative to minus 0.40%, it is lowered to 0.50%. One way to encourage banks not to let this manna rest and lend, whether to businesses or individuals.

At the same time, the European Central Bank is making a move towards financial institutions that are suffering from these negative rates . Some of their cash will therefore be exempt.

In addition, banks will benefit from a new series of giant loans at a very advantageous rate, provided that they in turn commit to lend.

Threat of a Brexit without agreement

Another move, this time towards the States: the ECB will resume its purchases of debt, public and private

All of these measures aim to support the growth of euro area countries and stabilize inflation. All in an already gloomy context, and that, according to Mario Draghi, which was the last day at the head of the ECB, the growing prospect of a Brexit without agreement degrades even more.

Source: rfi

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