European Central Bank decides to expand quantitative easing, but cuts off rate cuts March 23 23:20
The Central Bank of Europe, which is responsible for monetary policy in the euro area such as Germany and Italy, will meet on Monday to buy a variety of assets and invest a lot of money in the market to prevent the economic downturn caused by the spread of the new coronavirus. And expansion of quantitative mitigation measures to supply However, I declined the cut in interest rates, which was expected by the market.
The European Central Bank will hold a meeting at its headquarters in Frankfurt, Germany, on Tuesday to buy a variety of assets and supply large amounts of money to the market to prevent the economic downturn caused by the spread of the new coronavirus. We have decided to add € 120 billion to mitigation measures until the end.
On the other hand, the interest rate for depositing funds from financial institutions has been kept at the current minus 0.5%.
Concerns over the economic impact of the spread of the new coronavirus have led to global financial market turmoil in major European equity markets late last month, with a weekly decline in stock prices since the Lehman Shock in 2008. it is continuing.
Under these circumstances, the Bank of England in the United Kingdom, following the Central Bank of the United States, has also taken an urgent rate cut, and the market is increasingly expecting the Central Bank of Europe to take the next step.