The European Central Bank (ECB) is once again launching a broad program to stimulate the economy of the euro zone. The central bank will start buying bonds for 20 billion euros every month from November and the deposit rate, which banks pay the ECB, will be lowered to -0.5 percent, the central bank reports on Thursday.
Central bank president Mario Draghi will explain the measures at 2.30 p.m.
In recent years, the ECB's policy has partly contributed to the fall in savings and mortgage rates. The pressure on banks to offer even lower savings rates is expected to increase further.
The ECB feels it is necessary to take measures again, as inflation (the rise in consumer prices) in the euro zone is declining. After a peak of more than 2 percent in 2018, inflation has fallen into a downward trend this year. In July inflation was 1 percent. The ECB aims for inflation of just under 2 percent.
In addition, economic growth in the eurozone is slowing down in particular due to a slowdown in the industrial sector. Statistics office Eurostat announced on Thursday that industrial production also declined in July. Industrial production was 2 percent lower on an annual basis. The German economy is expected to end up in a recession due to the slump in the industry.