European central bank strengthening supply of funds with deferred interest rates

European central bank strengthens supply of funds with deferred interest rates at 1:45 on May 1

On the 30th, the European Central Bank held a board meeting to discuss monetary policy, and confirmed the policy to support the economy by, for example, maintaining the main interest rate levels and further strengthening the fund supply through financial institutions. .

The European Central Bank, which is responsible for monetary policy in 19 countries in the euro area, including Germany, France and Italy, held a meeting on the 30th to discuss monetary policy.

As a result, ▽ Maintening the level of main interest rates, such as the interest rate when depositing funds from financial institutions at the current minus 0.5%, and ▽ Quantitative easing measures to purchase various assets and supply a large amount of funds to the market And so on.
In addition, we confirmed that future interest rates would be the same as or lower than the current levels, and reiterated our policy of considering rate cuts as necessary depending on the economic situation.

Furthermore, we have decided to further strengthen the supply of funds through financial institutions. In the euro area, GDP (regional gross domestic product) for the three months until March announced on this day decreased by 3.8% in real terms from the previous three months, becoming the largest negative loss ever, and the next three months. Is expected to grow even more negative.
Although Germany, France, and Italy are moving to relax their restrictions on going out and economic activities, there is still no clear path for the economy to return to normal, and the European Central Bank will be faced with difficult steering.

President Lagarde "This year's economic growth rate will be negative 5-12%"

"The Eurozone faces an economic contraction at a scale and speed that it has never experienced in the past." The market is heading for serious deterioration. "

He also said that Eurozone GDP would worsen in the second quarter, saying, "This year's economic growth rate will fall from 5% to 12%. It depends on the whereabouts of the measures, but it remains unclear how to proceed. "He said that the damage to the economy will become more serious.