ECB lowered its key interest rate – and the economic forecast revised downwards
|
Today was the day. The European Central Bank lowered its key rate for the euro-zone to the historic low of 1.5 percent €. In the ten years of history of the ECB does this mean a new step. However, further interest rate cuts are expected. At least, sees it, the German Savings Banks and Giro Association so the CEO and Board member Dr. Karl-Peter Schack-Fallis plain words rate cut was on “The European Central Bank remains true to himself and continues to work with small steps. Even if the ECB today is not the same in the near jumped zero as banks already have done significant other, we expect nevertheless that in early summer once again a reduction is necessary. “At the same time, it was announced that the DSGV” in view of the not been braked downturn “assumes” that a key interest rate of 1.0% reached in June. If, then for the second half of the year the stabilization of the economy does not emerge, the ECB must use unconventional stabilization measures outside the interest rate policy to be prepared well. “
Jean-Claude Trichet, in his capacity European Central Bank President said today in announcing the new interest rate cut: “The world economy has slowed markedly in recent months.” The blogs already knows almost every child needs to be well to say any more. Still, the ECB needs to put up with, too late response to the signs of an incipient recession and instead of a major reduction in the prime rate increased again to have. Sebastian Wanke, an economist at DekaBank said that the present reduction, “We believe that the ECB needs to lower the rate until the next summer to 1.0 percent.” This could be the result of just that for late response to the financial signals. To what extent can Trichet and his men make allegations to have the euro zone to continue in the Meanies sent, you can never prove to be real. Unfortunately, you have to say here. Perhaps it is simply time that Trichet finally realizes that he seems to have been overwhelmed with his work for a while. A further reduction of the prime rate, he does not, said today, but also interest rates have now been a “very, very low level.” These words of the ECB leaders can now re-interpret each as it may …
