Lukewarm response as Draghi unveils ECB eurozone stimulus plan
- 8 years ago
The European Central Bank has announced fresh stimulus measures in a bid to boost inflation and the eurozone’s recovery.
The ECB is to extend its quantitative easing programme by six months. The bank’s President Mario Draghi told a news conference that its asset buying programme would continue at least until the end of March 2017, or beyond if necessary, at the current rate of 60 billion euros a month.
The scheme is to be enlarged to include the purchase of municipal and regional bonds.
Earlier the bank announced that the main interest rates would remain unchanged – at 0.05 percent for main refinancing operations, and 0.3 percent on the marginal lending facility.
But the main bank deposit rate has been cut further into negative territory – from -0.2 to -0.3 percent, charging banks more for parking cash with the central bank in a bid to boost lending.
“Today’s decisions also reinforce the momentum of the euro area’s economic recovery. The Governing Council will closely monit
The ECB is to extend its quantitative easing programme by six months. The bank’s President Mario Draghi told a news conference that its asset buying programme would continue at least until the end of March 2017, or beyond if necessary, at the current rate of 60 billion euros a month.
The scheme is to be enlarged to include the purchase of municipal and regional bonds.
Earlier the bank announced that the main interest rates would remain unchanged – at 0.05 percent for main refinancing operations, and 0.3 percent on the marginal lending facility.
But the main bank deposit rate has been cut further into negative territory – from -0.2 to -0.3 percent, charging banks more for parking cash with the central bank in a bid to boost lending.
“Today’s decisions also reinforce the momentum of the euro area’s economic recovery. The Governing Council will closely monit