The European Central Bank’s next German policy maker will bring with her an extensive portfolio of research into how financial systems throughout history have coped with war, bubbles and hyperinflation.
The European Central Bank (ECB) announced its key policy decisions to cut the deposit rate by 10 basis points to minus 0.50 percent and to restart net purchases under its asset purchase program (APP) at a monthly pace of 20 billion euros (about $21.9 billion) as from Nov. 1.
The European Central Bank is throwing every tool it has at the sluggish eurozone economy. Starting in September, it’ll make a generous funding offer to lenders in the region, returning to an approach it’s used twice before in the past five years.
The global march towards lower interest rates reaches Europe this week with the European Central Bank expected at least to signal easier monetary policy, while Turkey’s new banking chief is seen taking an ax to the country’s rates.
The European Central Bank is ready to adjust all of its tools to lift inflation but also needs to study a range of deeper challenges that could alter the course of its policy, Finnish central bank chief Olli Rehn said on Monday.
European Central Bank policymakers are open to cutting the ECB’s policy rate again if economic growth weakens in the remainder of the year and a strong euro hurts a bloc already bearing the brunt of a global trade war, two sources said.
The eurozone’s economic downturn is proving a boon for policymakers who are jostling to succeed Mario Draghi at the bloc’s central bank — offering them an opportunity to tout favored policy proposals and burnish their credentials for the job.