European Central Bank President Christine Lagarde called for a new policy mix, saying public investment should be stepped up to ease the burden on monetary stimulus and ensure the region can thrive in an uncertain world.
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.