European central bank keeps interest rates steady

Published:

On: Jan 2020

The European Central Bank(ECB) is agreed to vacate major interest rates for the euro area consistent and initiated a review of its financial policy strategy.  The governing council of ECB told in a statement that the Eurozone-related base interest rate will remain at 0.00 %, along with the marginal lending rate as well as deposit rate maintaining at 0.25 % and -0.50 % respectively.

The ECB said that it anticipates the vital ECB interest rates to place at their current or lower levels until it has observed the booming outlook. It also approved that the net purchases under its credit purchase scheme will continue at a monthly income of 20 billion euros. The president of the European Central Bank Christine Lagarde said that the threats related to the euro area growth outlook remain inclined to the downside, but have become less marked as some of the unreliability surrounding international trade is decreasing.

Miss. Lagarde said that the team of ECB is looking at the residues of the signing of the phase I trade deal between China and the United States of America to assess the overall effect on the euro zone. As for the expansion of euro zone, Lagarde said that the sign of expansion expectations remains at minimum levels but they have currently either stabilized or tied up slightly.

Measures of basic expansion have remained mainly muted, even though there are further signs of a fair gain in line with last expectations. She indicated that the establishment of structural policies in euro area nations requires to be essentially stepped up, and added that the ECB welcomed the Eurogroup’s deal in the month of December for separate fiscal responses and its readiness to corporate.

Moreover, she said that two of the countries that have financial space are now seriously observing at how to expand more financially alongside their respective budgets.