On March 12, the European Central Bank kept the three policy interest rates unchanged at its policy meeting and decided to increase the size of its assets by an additional 120 billion euros until the end of this year. This day also became the "fuse-out day" of the global stock markets. The stock markets of the eight countries melted down on the same day, including the third meltdown in the history of US stocks.
Why doesn't the European Central Bank cut rates? European Central Bank President Lagarde said at a press conference that fiscal policy should be the first and most important tool to respond to the crisis. No one should expect the central bank to respond first in the crisis.
She repeatedly stressed at the press conference that the European Central Bank is ready to adjust all tools to respond to the epidemic when needed, but the current fiscal stimulus is the most necessary because the spread of the new crown pneumonia epidemic is the main obstacle to economic growth prospects.
Surging news reporter Jiang Mengying